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Market may extend losses

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Capital Market
Last Updated : Mar 26 2018 | 9:04 AM IST

The stock market may extend Friday's losses amid weak global cues. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 40 points at the opening bell.

Overseas, Asian stocks edged lower amid fears that rising tensions between the United States and China could lead to a full-blown trade war. US stocks fell sharply on Friday, 23 March 2018 as investors assessed the possibility of a trade war brewing between the US and China.

Back home, Reliance Industries (RIL) on 23 March 2018 executed definitive agreements for combination of Saavn, a leading global music OTT platform, with its digital music service, JioMusic. The combined entity is valued at over US$1 billion, with JioMusic's implied valuation at US$ 670 million. The integrated business will be developed into a media platform of the future with global reach, cross-border original content, an independent artist marketplace, consolidated data and one of the largest mobile advertising mediums.

Reliance will also invest upto Rupee equivalent of US$100 million, out of which Rupee equivalent of US$20 million will be invested upfront, for growth and expansion of the platform into one of the largest streaming services in the world. The company will continue to operate the over-the-top media platform available on all app stores. The three co-founders of Saavn, Rishi Malhotra, Paramdeep Singh and Vinodh Bhat, will continue in their leadership roles and will drive growth of the combined entity.

In addition, Reliance is acquiring partial stake from the existing shareholders of Saavn for US$104 million, while these shareholders retain their balance stake. The shareholder base of Saavn includes Tiger Global Management, Liberty Media and Bertelsmann among others. The announcement was made after market hours on Friday, 23 March 2018.

The stock market tumbled on Friday, 23 March 2018 due to weak global equities after US President Donald Trump announced tariffs on Chinese goods, stoking fears of a trade war. The Sensex had fallen 409.73 points or 1.24% to settle at 32,596.54, its lowest closing level since 23 October 2017.

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The trading activity showed that the foreign portfolio investors (FPIs) bought shares worth a net Rs 1628.19 crore on 23 March 2018 as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 935.41 crore on 23 March 2018, as per provisional data.

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First Published: Mar 26 2018 | 7:51 AM IST

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