Reliance, Paytm triggered India’s stock market bloodbath

Mumbai: On November 18, India’s biggest IPO tanked. A day after the Paytm listing, Reliance Industries’ 2019 deal with Saudi Arabia’s state-controlled energy giant Aramco was called off. As India’s largest company eyes a greener future, Aramco’s plan to buy a 20% stake worth $15 billion is off the table. Shares of the Mukesh Ambani-led company fell more than 4% on the news.

Moody’s Investors Service on Tuesday said that Reliance Industries’ (RIL) decision to re-evaluate the deal with Saudi Aramco will not impact the credit rating of the Mukesh Ambani-led company.

RIL had said that it had decided to re-evaluate the deal under which Saudi Aramco was to invest roughly $15 billion in the company’s oil-to-chemicals (O2C) business.

The two events together created a cocktail of chaos for domestic public markets.

The benchmark S&P BSE Sensex, which includes Reliance among its 30 stocks, plunged more than 1,000 points, or 1.96%, to 58,465.89 this week. The broader NSE Nifty index, which comprises 50 of India’s largest companies, also fell 1.96%, ending 348 points lower at 17,416.55.

Image courtesy of thesatimes

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