Markets

Sensex, Nifty turn choppy; RIL jumps on KKR deal

Equity benchmark Sensex pared opening losses to turn positive in early trade on May 22 amid gains in index-heavyweights Reliance Industries, Infosys and SBI.

Equity benchmark Sensex pared opening losses to turn positive in early trade on May 22 amid gains in index-heavyweights Reliance Industries, Infosys and SBI.   | Photo Credit: Arunangsu Roy Chowdhury

After starting over 250 points lower, the 30-share index made a U-turn to rise over 70 points to 31,005.19.

Equity benchmark Sensex pared opening losses to turn positive in early trade on May 22 amid gains in index-heavyweights Reliance Industries, Infosys and SBI.

After starting over 250 points lower, the 30-share index made a U-turn to rise over 70 points to 31,005.19.

The index, turned choppy in the first hour of trade ahead of Reserve Bank of India’s press conference, scheduled for 1000 hours.

NSE Nifty was quoting 4.35 points or 0.05% lower at 9,101.90.

Buying in Reliance Industries offset the negative sentiment in the market as the scrip jumped over 1% after the company announced the sale of a 2.32% stake in its digital unit to U.S. private equity giant KKR for ₹11,367 crore.

This the fifth deal in four weeks that will inject a combined ₹78,562 crore in the oil-to-telecom conglomerate to help it pare debt.

UltraTech Cement, SBI, Infosys, Tech Mahindra were among the other gainers.

On the other hand, Tata Steel, HCL Tech, PowerGrid and NTPC were among the laggards.

In the previous session, the BSE barometer settled 114.29 points or 0.37% up at 30,932.90, while the broader Nifty advanced 39.70 points, or 0.44%, to 9,106.25.

Foreign portfolio investors offloaded equities worth ₹258.73 crore in the capital market on May 21, provisional exchange data showed.

Besides stock-specific action, investors are cautious ahead of Reserve Bank of India’s announcement, traders said.

Further, weak cues from global markets and spiking COVID-19 cases in the country hit investor sentiment, they added.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading significantly lower.

Hong Kong led a sell-off across Asian equities after China introduced proposals to enact a national security law for the city.

Stock exchanges on Wall Street ended with losses in overnight session.

International oil benchmark Brent crude futures were trading 3.72% lower at $34.72 per barrel.

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Printable version | May 28, 2020 6:59:02 PM | https://www.thehindu.com/business/markets/sensex-nifty-turn-choppy-ril-jumps-on-kkr-deal/article31647019.ece

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