World Markets

Indian shares slip as Reliance, weak metal stocks drag

Credit: REUTERS/FRANCIS MASCARENHAS

Indian shares inched lower on Monday as Reliance Industries fell after a Singapore arbitration panel put its deal for Future Group assets on hold and metal stocks declined.

By Derek Francis

BENGALURU, Oct 26 (Reuters) - Indian shares inched lower on Monday as Reliance Industries fell after a Singapore arbitration panel put its deal for Future Group assets on hold and metal stocks declined.

The NSE Nifty 50 index .NSEI fell 0.2% to 11,906.15 by 0354 GMT, while the S&P BSE Sensex .BSESN was down 0.18% at 40,615.49.

Dragging the market, Reliance RELI.NS fell 1.9% after e-commerce giant Amazon.com Inc AMZN.O won an interim order to pause Future Group's $3.38 billion asset sale to India's most valuable company.

Amazon has alleged the deal breached the terms of its stake purchase in Future Coupons Ltd, which owns a 7.3% stake in Future Retail.

Shares of Future Retail FTRL.NS were down 5.2%.

"The immediate sentiment from the arbitration is negative and investors are waiting for final clarity on the deal," said Anita Gandhi, a director at Arihant Capital Markets in Mumbai.

The Nifty metals index .NIFFTYMET fell 1.8% after sector heavyweight JSW Steel missed quarterly profit estimates on Friday, sending its shares down 2.3%.

Rival steelmaker Tata Steel TISC.NS was down 1.6%, while miner Hindalco HALC.NS fell about 1%.

Among gainers, private-sector lender Indusind Bank INBK.NS was up about 2.6% after media reports that larger peer Kotak Mahindra Bank KTKM.NS was considering merging with it.

Kotak shares fell 0.4%.

Nestle India Ltd NEST.NS rose about 2% after it reported higher quarterly revenue on Friday and announced plans to invest 26 billion rupees ($352.60 million) over the next four years.

Broader Asian shares were mixed as surging coronavirus cases across Europe and the United States worried investors. MKTS/GLOB

U.S. Secretary of State Mike Pompeo is scheduled to arrive in India later on Monday, in a bid to strengthen ties with the country.

($1 = 73.7370 Indian rupees)

(Reporting by Derek Francis in Bengaluru; Editing by Aditya Soni)

((derek.francis@thomsonreuters.com; +91-9986311363 and @derekfrancis089 on Twitter;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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