Indian Shares Rise as Jio IPO Opens
IT stocks and Reliance Industries support early gains as investors watch India's record $3.2 billion Jio Platforms share offering and rising crude prices.
Indian equity markets opened higher on Wednesday, October 21, as gains in information technology stocks and Reliance Industries lifted sentiment, while investors focused on the launch of Jio Platforms’ record initial public offering. At 9:20 AM IST, the Nifty 50 had risen 0.78% to 23,066.55, while the BSE Sensex advanced 0.86% to 74,488.60, according to Reuters.
The positive opening followed a decline of more than 1% in both benchmark indices on Monday. Markets were closed on Tuesday for a local holiday. Investors were also assessing the outlook for a possible US-India trade agreement after US Secretary of State Marco Rubio said Washington and New Delhi could reach a deal within weeks.
Jio Platforms’ $3.2 billion IPO opened for public subscription on Wednesday and is set to close on October 23. The issue has a price band of ₹1,065 to ₹1,119 per share and values the digital and telecom business at up to $108.3 billion. The company’s shares are expected to begin trading on October 28.
Ahead of the public offering, Jio Platforms allocated shares worth approximately $853 million to anchor investors, including BlackRock, Fidelity and the Abu Dhabi Investment Authority. The reserved institutional portion attracted bids exceeding $25 billion, indicating substantial demand from large investors before the retail subscription window opened.
Information technology shares led the early market advance, with the Nifty IT index gaining 2.2%. L&T Technology Services rose 10.5% after reporting better-than-expected revenue and profit for the September quarter. Reliance Industries also supported sentiment as investor attention turned to the listing of its digital-services subsidiary.
However, elevated crude oil prices remained a potential headwind. Brent crude futures rose more than 1% to around $110 a barrel amid concerns over shipping disruptions in the Red Sea and threats to oil infrastructure in Saudi Arabia. Higher oil prices can increase India’s import bill, put pressure on the fiscal balance and raise costs for businesses.
Investors were also watching Bajaj Finance after the non-bank lender reported a 28.7% year-on-year increase in quarterly profit, supported by growth in its loan book. Market direction during the session was expected to reflect developments in the Jio IPO, corporate earnings, crude prices and expectations for India-US trade relations.