India In-Focus — Shares gain; Reliance fined over Facebook deal; Tata Steel buys coal from Russia 

n April 2020, Meta’s Facebook invested $5.7 billion in Reliance’s Jio Platforms (Shutterstock)
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MUMBAI: Sharp gains in metal and technology stocks set India’s blue-chip indexes on course for their best session in over three weeks on Tuesday, even as investors grappled with worries over a possible hit to growth from aggressive central bank rate hikes.

The NSE Nifty 50 index rose 1.25 percent to 15,541.6, as of 0437 GMT, while the S&P BSE Sensex climbed 1.19 percent to 52,213.58.

India fines Reliance for not promptly disclosing 2020 Facebook deal

India’s market regulator on Monday fined Reliance Industries and two of its compliance officers for violating fair disclosure norms during Facebook’s $5.7 billion investment in its digital unit in 2020.

In April 2020, Meta’s Facebook invested $5.7 billion in Reliance’s Jio Platforms, aiming to allow WhatsApp to offer payments services to millions of small businesses. The deal helped billionaire Mukesh Ambani’s Reliance slash its heavy debt load.

The Securities and Exchange Board of India said Reliance did not disclose the deal even after newspaper reports in March 2020 published price-sensitive details about the imminent investment that led to a spike in its shares.

Reliance did not immediately respond to requests for comment outside regular business hours.

“When the bits of (unpublished price-sensitive information) that then became selectively available the company abdicated its responsibility to verify and come clean on the unverified information that was floating around,” SEBI said in its order late on Monday.

Tata Steel buys coal from Russia weeks after vowing to cut ties

India’s top steelmaker Tata Steel imported about 75,000 tons of coal from Russia in the second half of May, two trade sources and one government source said, weeks after pledging to stop doing business with Russia.

Tata Steel had said in April all its manufacturing sites in India, the UK and the Netherlands had sourced alternative supplies of raw materials to end its dependence on Russia, adding it was taking “a conscious decision to stop doing business with Russia.”

Still, in May, Tata Steel shipped about 75,000 tons of PCI coal, used in steelmaking, from Russia’s Vanino port, out of which 42,000 tons were offloaded in a port in Paradip on May 18 and 32,500 tons in Haldia, said the two trade sources who wished to remain anonymous as they were not authorized to speak on the matter.

A spokesman for Tata Steel said the deal to import coal from Russia was made before the company’s announcement to cut business ties with Russia, without providing further details.

(With input from Reuters)