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Mumbai, April 22, 2020
The Indian stock market rose on Wednesday, boosted by the Rs 43,574 crore investment by Facebook in Reliance Jio along with the positive trend in the global indices.
Bringing a sense of relief and enthusiasm among investors and market watchers, Reliance Industries (RIL) on Wednesday morning announced that tech giant Facebook would take up a 9.99 per cent stake in RIL-led Jio Platforms, the largest FDI in the Indian tech sector.
Rahul Sharma, Research Head, Equity99 said: "Reliance Jio-Facebook deal brought the much-needed smile on traders today in spite of weak global clues. The expectation of the announcement of an economic package by the government also kept sentiments positive today."
He noted that the rally was led by index heavyweight RIL which surged 10.30 per cent to close at Rs 1363.35 per share.
Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, said that this is the largest investment for a minority stake by a tech company anywhere in the world and the largest FDI in the technology sector in India.
"The deal values Reliance Jio as one of the five largest companies in India by market capitalization," he added.
On the sectoral indices, he noted that the majority of sectors ended in green except pharma, PSU banks and realty indices.
The BSE Sensex breached the psychological 31,000 mark on Wednesday and closed at 31,379.55, higher by 742.84 points or 2.42 per cent from its previous close of 30,636.71.
It had opened at 30,856.14 and touched a high of 31,471.14 and a low of 30,578.55 points.
The Nifty50 on the National Stock Exchange closed at 9,187.30, higher by 205.85 points or 2.29 per cent from its previous close.
The fall in Brent crude prices was also a major support for the investor sentiments and Brent accounts for around 25 per cent of India's crude imports.