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Modi needs to send Ambani a thank-you note

Mumbai: About $15 billion of overseas funds raised by Jio Platforms are due to enter the Indian financial system in just two weeks, reflecting renewed global confidence in the country and helping add sheen to the rupee that last week logged its biggest gains this year.Jio Platforms, the communications platform of Reliance Industries (RIL), has raised more than 1.17 lakh crore over 11 rounds in just two and a half months. Traders estimate that $4-6 billion of funds have already come into Jio last week and a similar amount is expected to flow in this week.Barclays, BNP, Citi, Bank of America and Standard Chartered are said to be among the banks involved in bringing the funds into India. The flows have helped the rupee gain 1.34 per cent in just one week, Bloomberg data compiled by ETIG showed. During the period, it has turned out to be the best performing Asian currency. The unit could climb further 1.5 per cent in the next few weeks as the fund flows continue.“After a prolonged range trade during the first quarter, the rupee has regained appreciation bias amid large telecom FDI (foreign direct investment) inflows…,” said B Prasanna, Group Executive, Head – Global Markets & Proprietary Trading Group, ICICI Bank. “From a near-term perspective, as telecom FDI flows come through, further appreciation toward the 74 mark is possible.” 76805681Individual banks could not be contacted immediately.On Friday, the rupee closed at 74.64 and could well rise up to 1.5 per cent, breaching the next crucial level at 73.60, dealers said.Intel is the latest global company to buy into Jio Platforms, taking the total investments in the RIL entity to Rs 1,17,588.45 crore for a total 25.09 per cent holding. The latest investment pegs Jio Platforms’ equity value at 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore, Reliance said last week.The entire investment schedule in Jio was announced beginning late April, helping reverse the trend in the rupee that has otherwise been among the worst performers in Asia this year.“The momentum will continue as long as flows keep coming in,” said Ashish Vaidya, head of trading at DBS Bank. In the three-month period, the one-month option volatility index, a barometer for calmness in the currency market, plunged 457 basis points, show data from Financial Benchmarks India.The Reserve Bank of India (RBI) has been shoring up forex reserves to help ride out the volatility, and its intervention may have prevented the rupee from climbing further. But Mint Road sprang a surprise last week, with the local unit climbing 1.27 per cent on Thursday and Friday.“The rupee is coming back to life after a dry spell,” said Anindya Banerjee, currency analyst at Kotak Securities. “But only RBI intervention will decide that course.”