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Indian shares slip as Reliance, weak metal stocks drag

BENGALURU, Oct 26 (Reuters) - Indian shares inched lower on Monday as Reliance Industries fell after a Singapore arbitration panel put its deal for Future Group assets on hold and metal stocks declined.

The NSE Nifty 50 index fell 0.2% to 11,906.15 by 0354 GMT, while the S&P BSE Sensex was down 0.18% at 40,615.49.

Dragging the market, Reliance fell 1.9% after e-commerce giant Amazon.com Inc won an interim order to pause Future Group’s $3.38 billion asset sale to India’s most valuable company.

Amazon has alleged the deal breached the terms of its stake purchase in Future Coupons Ltd, which owns a 7.3% stake in Future Retail.

Shares of Future Retail were down 5.2%.

“The immediate sentiment from the arbitration is negative and investors are waiting for final clarity on the deal,” said Anita Gandhi, a director at Arihant Capital Markets in Mumbai.

The Nifty metals index fell 1.8% after sector heavyweight JSW Steel missed quarterly profit estimates on Friday, sending its shares down 2.3%.

Rival steelmaker Tata Steel was down 1.6%, while miner Hindalco fell about 1%.

Among gainers, private-sector lender Indusind Bank was up about 2.6% after media reports that larger peer Kotak Mahindra Bank was considering merging with it.

Kotak shares fell 0.4%.

Nestle India Ltd rose about 2% after it reported higher quarterly revenue on Friday and announced plans to invest 26 billion rupees ($352.60 million) over the next four years.

Broader Asian shares were mixed as surging coronavirus cases across Europe and the United States worried investors.

U.S. Secretary of State Mike Pompeo is scheduled to arrive in India later on Monday, in a bid to strengthen ties with the country. ($1 = 73.7370 Indian rupees) (Reporting by Derek Francis in Bengaluru; Editing by Aditya Soni)

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