Walmart eyeing India market among major developments to look out for today

The Federal highlights some of the major developments to look out for in the domestic business sector on Thursday (March 9):

1. Walmart says India will be its biggest market

During a conference call with institutional investors, Walmart CFO John David Rainey stated that India would be the company’s largest market in the world, surpassing China. He stated that Flipkart and PhonePe are market leaders in India and that the Indian e-commerce company has helped Walmart’s international operations, a report in ET said.

Impact: Due to this development, Walmart may increase its investments in Indian operations to expand. However, the firm has yet to indicate whether PhonePe’s IPO plan will be expedited.

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2. Adani Transmission, Adani Green promoters pledge equity

Adani Transmission and Adani Green Energy promoters have pledged 0.76 per cent and 0.99 per cent equity to SBICAP Trustee Company, a State Bank of India unit, respectively. This comes about a month after the two companies and Adani Ports and Special Economic Zone (APSEZ) pledged shares to SBICAP Trustee. On February 11, the trustee announced that it had sold 1 per cent of Adani Ports, 0.5 per cent of Adani Transmission, and 1.6 per cent of Adani Green.

Impact: Share pledging is additional collateral assessed at the end of each month, and any deficiency must be made up. The collateral coverage is 140 per cent of the loan amount obtained from the lender. According to the New York-based rating agency, Fitch, loans to all Adani Group firms account for 0.8 per cent to 1.2 per cent of total lending by Fitch-rated Indian banks. The group accounted for 0.9 per cent of the State Bank of India’s loan book, or $3.3 billion.

3. GQG Partners to increase investment in Adani Group

GQG Partners’ founder Rajiv Jain has stated that the fund firm’s participation in the Adani Group is expected to increase. The fund invested $1.9 billion in the Adani Group last week. According to Jain, the fund sees significant value in Adani group stocks following the severe decline experienced in the previous month since the publication of the Hindenburg report. This transaction represents GQG’s entry into one of India’s largest infrastructure franchises among public stocks. For example, the portfolio investment gives GQG a stake in India’s largest port, airport operator, and private-sector power transmission company. Furthermore, the investment in Adani Green Energy gives GQG a stake in India’s largest and most efficient green energy capacity.

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Impact: GQG investment will allow the fund to be part of the Adani group’s major projects, including green hydrogen, electrolyser manufacturing, data centre business, private digital networks, etc. In addition, the investment gives GQG access to the Adani group’s current infrastructure projects.

4. National Stock Exchange (NSE) issues a warning to investors
   

The NSE has warned investors, asking them not to share their trading account details or fall for investment schemes that guarantee profits, as such acts are unlawful. The NSE pointed out that a person named ‘Pankaj Sonu’, who works for a company called ‘Trading Master’ has been collecting cash from the public through various schemes that promise significant investment returns. The NSE has warned that neither the individual nor the organisation is registered as a member or authorised person with the NSE. Investors should be cautious and avoid dealing with persons or businesses not registered with the NSE or other recognised market authorities. Revealing account information or participating in unregistered schemes can result in financial losses and legal ramifications.

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Impact: Investors who participate in unlawful schemes, like those offered by ‘Pankaj Sonu’ and ‘Trading Master’, do so at their own risk, cost, and consequences, according to the NSE’s statement. Because these schemes are neither sanctioned nor endorsed by the Exchange, investors who willingly participate in them will have no recourse or protection from the Exchange. Therefore, investors should exercise caution and due diligence before investing in any scheme or revealing their trading account details to any people or entity. They should also check the credentials of the businesses with which they do business and confirm that they are registered with the NSE or other recognised market authorities. By doing so, investors can avoid falling victim to fraudulent schemes and protect themselves from financial losses and legal consequences.

Who’s meeting whom

Sonata Software: To meet investors and analysts on March 9.

UltraTech Cement: To meet investors and analysts on March 9.

Crisil: To meet investors and analysts on March 9 and 14.

PVR: To meet investors and analysts on March 9.