Stock Market LIVE: Indices to open on muted note; SGX Nifty is in red

Adani’s loans under RBI watch

The Reserve Bank of India (RBI) is keeping a close eye on loans to the Adani group, with regulatory officials directing lenders to provide weekly updates on their financial exposure to the group’s enterprises, a person aware of the development said.

Last month, RBI asked banks to share data on exposure to the Adani group after US-based short seller Hindenburg Research alleged accounting fraud and stock manipulation at its companies. While the conglomerate has strongly denied the allegations, the group has shed more than $120 billion in market value since the allegations were made on 24 January. (Read More)

Govt may ask HZL to explore share swap,  rights  issues

Hindustan Zinc Ltd (HZL) should explore alternative financial strategies other than handing out cash for the proposed $2.98 billion acquisition of Vedanta Ltd’s zinc assets, a government official aware of the plans said.

The government may ask HZL to consider share swaps, warrants or rights issues to purchase these assets rather than using cash reserves, the official said on condition of anonymity.

“We understand that the company needs to acquire mines to grow its business, but that should not be done through a cash acquisition. There are these options which the company can exercise. The government is a stakeholder in the company and has the right to cash reserves, and we will not let them use it for a related-party transaction,” the official said. (Read More)

Stocks drop on Friday, send Wall Street to its worst week of the year

Another cold reminder that inflation remains hotter than hoped sent Wall Street skidding Friday, and stocks closed out their worst week since early December.

The S&P 500 fell 1.1% to cap its third straight weekly loss. The Dow Jones Industrial Average dropped as many as 510 points before closing down 336 points, or 1%, while the Nasdaq composite lost 1.7%.

Stocks have dropped through February as a stream of reports have shown everything from inflation to the job market to spending by shoppers is staying hotter than expected. That’s forced Wall Street to raise its forecasts for how high the Federal Reserve will have to take interest rates and then how long to keep them there.

Higher rates can drive down inflation, but they also raise the risk of a recession because they slow the economy. They likewise hurt prices for stocks and other investments.

The latest reminder came Friday after a report showed that the measure of inflation preferred by the Fed came in higher than expected. It said prices were 4.7% higher in January than a year earlier, after ignoring costs for food and energy because they can swing more quickly than others. That was an acceleration from December’s inflation rate, showing the wrong momentum, and it was higher than economists’ expectations of 4.3%.

It echoed other reports from earlier in the month that showed inflation at both the consumer and wholesale levels was higher than expected in January. (AP)