Indian equity benchmarks inch lower as oil climbs; Jio makes strong debut
Indian share benchmarks inched lower on Wednesday as rising oil prices weighed on risk appetite, while Jio Platforms hogged the limelight after its blockbuster listing ranked it as the second-biggest company in the country by market capitalisation. The Nifty 50 fell 0.22% to 22,698.85, and the Sensex shed 0.48% to 73,246.03. They had fallen more than 1% during the day. Telecoms and digital…
On Wednesday, Indian equity benchmarks experienced a slight decline as rising oil prices dampened risk appetite. The Nifty 50 index fell 0.22% to 22,698.85, while the Sensex dropped 0.48% to 73,246.03. Both indices had fallen more than 1% during the course of the day. Telecom and digital giant Jio Platforms surpassed all expectations with its strong debut on the market, ranking as the second-largest company in India by market capitalization after parent company Reliance Industries.
Jio Platforms saw a remarkable jump of about 27%, reaching 1,417.5 rupees and a market value of $137.31 billion. This valuation places Jio Platforms second only to Reliance Industries. Despite the mixed sentiment, with seven out of the 16 major sectors recording losses, small-cap and mid-cap stocks managed to gain 0.9% and 0.4%, respectively.
Pankaj Pandey, head of retail research at Securities, noted that there is no clear directional strength in the market due to the ongoing challenges in the global macroeconomic environment, primarily driven by higher crude oil prices. The recent attack on a refinery in Saudi Arabia, a major oil exporter, has added to concerns about energy supply disruptions and inflation, causing oil prices to climb 0.5% to approximately $115 a barrel.
The focus has now shifted to the US Federal Reserve, which is expected to maintain interest rates steady during their meeting on Wednesday before resuming monetary tightening in December. IT companies, which derive a significant portion of their revenue from the US market, suffered as the sector performed poorly, among the top losers.
Reliance Industries, despite Jio Platforms' stellar performance, declined by 3.2%. Analyst Aamar Deo Singh suggested that investors who previously saw potential in Reliance Industries' digital business may now be more inclined to hold Jio Platforms independently. Other companies within the Nifty constituents, such as Larsen & Toubro and SBI Life Insurance, experienced gains of 3.7% and 2.1%, respectively, following their strong quarterly earnings reports.
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