Sensex sheds 540 points to end at 40,145, Reliance shares at its lowest since August

Reliance shares, which fell 4.47 per cent to its lowest level since August 4, dragged share markets along with metal and auto stocks. Nifty fell 162.60 points to 11,767.75, while Sensex was down 540 points at 40,145.50.

Stock markets, Sensex and Nifty, lower on Monday as Reliance Industries fell to its lowest since August after a Singapore arbitration panel put its deal for Future Group assets on hold.

 

Nifty fell 162.60 points or 1.36 per cent to 11,767.75, while Sensex was down 540 points or 1.33 per cent at 40,145.5.

 

Reliance shares, which fell 4.47 per cent to its lowest level since August 4, took a hit after Amazon.com Inc won an interim order in Singapore to pause Future Group’s $3.38 billion asset sale to Reliance. Amazon has alleged the deal breached the terms of its stake purchase in Future Coupons Ltd, which owns a 7.3 per cent stake in Future Retail.

 

Shares of Future Retail dropped as much as 8.48 per cent and the company said it would take steps in enforcement proceedings to close the deal without delay.

 

But market losses were not only driven by Reliance-Future group sale. Metal and auto stocks also contributed to losses.

 

Nifty metals index fell as much as 4.57 per cent and the Nifty Auto index skid as much as 3.6 per cent.

 

Motorcycle makers Hero Motocorp and Bajaj Auto fell 6.72 per cent and 6 per cent, respectively. Miner Hindalco fell about 5.6 per cent.

 

Among gainers, private-sector lender Kotak Mahindra Bank was up about 2.7 per cent after the company reported a September-quarter profit that beat estimates.

 

(With inputs from Reuters)