Indian shares set for flat start ahead of Reliance-Jio Financial demerger

BENGALURU (Reuters) – Indian shares are set to open little changed on Thursday, ahead of the demerger of Reliance Industries’ financial services business and quarterly results from several top Nifty 50 firms, amid improved global cues.

India’s GIFT Nifty on the NSE International Exchange was down 0.02% at 19,837, as of 7:59 a.m. IST.

Both the Nifty 50 and Sensex hit fresh highs for the fourth session in a row on Wednesday, powered by a late-session resurgence in Reliance Industries and financials on strong earnings.

Reliance, India’s most valuable company, will demerge its financial services business on Thursday, with the stock exchanges set to hold a special “price discovery” session for the first time ever to determine the value of Jio Financial Services’ shares. Several analysts expect the financial services business to be valued at 160-190 rupees per share.

The conglomerate has been a major factor behind the recent rise in Indian shares, with the stock rising 8% since the announcement of the record date for the demerger on July 8. The Nifty 50 has risen 2.6% over the same period.

Global equities advanced on improved sentiment following a surprise moderation in inflation in the United Kingdom, amid rising hopes that the U.S. Federal Reserve is nearing the end of its monetary policy tightening. Asian markets edged higher. [MKTS/GLOB]

Investors also await the June-quarter earnings of top Nifty 50 firms Infosys and Hindustan Unilever, due later in the day.

Foreign institutional investors bought 11.65 billion rupees ($142.04 million) worth of Indian equities on a net basis on Wednesday, while domestic investors sold 21.35 billion rupees of shares, as per provisional NSE data.


** Dr Reddy’s Laboratories: U.S. FDA completes pre-approval inspection at the drugmakers’s API manufacturing facility in Andhra Pradesh with zero observations.

** Olectra Greentech: Co awards contract worth 3.95 billion rupees for the construction of greenfield electric vehicles (EV) manufacturing facility to Megha Engineering.

** Shree Cement: Co gets letter from Ministry of Corporate Affairs informing order of inspection.

** Tata Communications: Co reports 30% slide in profit in June quarter on higher costs.

($1 = 82.0200 Indian rupees)

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sonia Cheema)