Reliance Lifts Indian Stock Market After Meta Data Centre Deal

The Indian benchmark stock market indices turned higher on Wednesday after a flat start, led by Reliance Industries, after Meta Platforms' announcement of its first AI-enabled data centre partnership in India.

The benchmark Nifty 50 rose 0.59% at 23,379.4, while the BSE Sensex gained 0.7% to 74,436.6, as of 9:57 AM.

Reliance, the third-heaviest stock on the benchmarks, rose 2.1% after a Meta statement said the company will lease a data centre the Mukesh Ambani-led company will build in India.

Eleven of the 16 major sectors logged gains. The broader small-caps and mid-caps traded flat.

Heavyweight financials and private banks gained 0.6% each.

Metals fell 1.1%, with 14 of the 15 constituents in the red, asrenewed Middle East hostilities and rising expectations of a Federal Reserve rate hike by year-end fueled demand concerns ahead of key U.S. inflation data due later in the day.

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Meanwhile, fresh hostilities between the U.S. and Iran clouded hopes for a durable ceasefire and kept global markets on edge, after the U.S. launched strikes against Iran after President Donald Trump said that Tehran had downed a U.S. Apache helicopter in the Strait of Hormuz.

Broader Asian stock markets fell 1.8%, as Brent crude rose 0.5% to $92 a barrel after sliding to a seven-week low on Tuesday.

"With sentiment remaining fragile due to the Middle East conflict and volatility in crude prices, we remain cautious on the benchmark index while focusing on stock-specific opportunities at this juncture," said Ajit Mishra, senior vice president of research at Religare Broking.

Afcons Infrastructure jumped 9% after winning a 53 billion rupee order while CMR Green Technologies opened at a 39.6% premium over its issue price in debut trade.

E-commerce platform Meesho gained 4% after Jefferies started its coverage of the stock with a “buy”.