Jio Platforms ends debut nearly 27% above IPO price as Sensex slips; US Fed holds rates

Shares of Jio Platforms closed their first day of trading on Wednesday nearly 27% above the IPO price, even as the broader market ended lower on selling in Reliance Industries and IT stocks.

Jio shares listed at Rs 1,358 on both the NSE and BSE, about 21% above the issue price of Rs 1,119, and extended gains through the session to close around Rs 1,419. That gave the Reliance-backed digital and telecom company a market value of about Rs 13 lakh crore, making it India's second most valuable listed company after its parent, Reliance Industries.

Benchmarks end in the red

The BSE Sensex fell 352.64 points, or 0.48%, to close at 73,246.03 after slipping below 72,700 during the day. The NSE Nifty 50 lost 50.90 points, or 0.22%, to end at 22,698.85.

Reliance Industries fell more than 3%, as did Infosys, while Tech Mahindra, TCS and Bharti Airtel also declined. The Nifty IT and oil and gas indices each dropped about 2%. Larsen & Toubro bucked the trend, rising nearly 4% after reporting strong quarterly profit growth. Mid-cap and small-cap shares outperformed the benchmarks, ending with gains.

Brent crude remained close to $115 a barrel on worries about supply disruption after Houthi attacks on Saudi energy facilities, keeping pressure on India, which imports most of its oil.

Fed keeps rates steady

Later on Wednesday, the US Federal Reserve left its benchmark interest rate unchanged in a range of 3.75% to 4.00%, a month after raising it for the first time in three years. The Fed said inflation remains elevated and that it wanted more information before its next move. Two policymakers, Governor Lisa Cook and Cleveland Fed President Beth Hammack, dissented in favour of another quarter-point increase.

US consumer inflation stood at 3.7% in September, well above the Fed's 2% target, as higher energy prices fed through the economy.

What it means for Indian investors

The Fed's decision to hold, combined with signs that some officials favour further tightening, keeps US rates high, which can weigh on foreign flows into emerging markets such as India. Investors will also track crude prices and the next set of quarterly earnings. This report is for information only and is not investment advice.