Reliance Pulls India Shares Down, Amazon Tries to Block Deal

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Indian shares fell on Wednesday, dragged down by heavyweight Reliance Industries, after U.S. ecommerce giant Amazon.com sought to block Future Groups 3.4 billion retail asset sale to the conglomerate, while preBudget jitters also weighed on sentiment.

The bluechip NSE Nifty 50 index fell 0.78 to 14,127.70, while the benchmark SP BSE Sensex slipped 0.84 to 47,940.00 by 0522 GMT. Financial markets were closed on Tuesday for a holiday.

Shares of Reliance Industries slipped as much as 2.6 to an over onemonth low of 1,891.15 rupees, making it the top drag on Nifty.

Amazon.com requested an Indian court to enforce a Singapore arbitrators order that Reliances deal with the Future Group be put on hold, Reuters reported on Monday.

Future Retails shares fell 5 on the news, after Amazon.com also called for Future Groups chief executive officer to be detained.

There is some overhang in the markets due to negative global cues and some nervousness ahead of the budget because of which people are lightening their positions said Siddhartha Khemka, head of retail research at Motilal Oswal Securities in Mumbai.

A Reuters poll of economists showed that Indias federal budget, due on Feb. 1, would help a significant economic recovery in financial year 202122.

The International Monetary Fund on Tuesday revised Indias growth forecast for 2021 upwards to 11.5.

Adding to the pressure, Asian shares also slipped as investors looked to the Federal Reserves guidance on monetary policy.

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