Indian stocks close lower as Reliance lags
BENGALURU, Aug.6 (Reuters) – Indian stocks closed lower on Friday, ending a four-day winning streak plagued by heavyweight Reliance Industries after India’s highest court ruled in favor of the arbitration order stopping the sale of assets of Future Retail to the conglomerate.
The NSE Nifty 50 (.NSEI) fell 0.35% to 16,238.20 and the S&P BSE Sensex (.BSESN) slipped 0.4% to 54,277.72. The indices again closed up 3% for the week.
Shares of Reliance (RELI.NS) and Future Retail Ltd (FRTL.NS) fell 2.1% and 9.9%, respectively, after India’s Supreme Court upheld an arbitration order stopping the deal $ 3.4 billion from the conglomerate to buy Future Retail. Read more
Meanwhile, India’s central bank kept rates at record highs as widely expected on Friday, but raised its inflation forecast and said it would normalize liquidity conditions in a signal that policymakers could move closer. the reduction in stimulus measures induced by the pandemic. Read more
“The RBI is unlikely to change its stance in October policy, although the split voting pattern may increase further,” Kotak Mahindra Bank said in a note.
“We anticipate that the start of policy normalization in the form of a hike in the reverse repurchase rate could be around the December policy after the risks of a new wave of Covid recede.
The benchmark 10-year bond yield rose to 6.24%, while the Indian rupee closed at 74.16 against the dollar.
Among individual stocks, Strides Pharma Science Ltd (SRID.NS) fell 6.3% after reporting a net loss in the June quarter.
Shares of Vodafone Idea (VODA.NS) rose more than 19% according to a report that lenders from the indebted telecom operator were in talks to swap their debt for equity.
Among other stocks, Glenmark Life Sciences (GLEM.NS) closed up 4% on its debut in the Mumbai market after its initial public offering was oversubscribed 44 times.
($ 1 = 74.1050 Indian rupees)
Reporting by Nallur Sethuraman in Bengaluru; Editing by Krishna Chandra Eluri
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