Facebook acquires shares of Reliance Jio- Share Market Update
On the trading day 22/04/2020, the social media giant Facebook, invested in the Indian telecommunication company Reliance Jio. Reliance Jio achieved a great reap from the Indian Market in the last year.
In other words, we can say that Jio is also giant company under the group of Reliance in the telecommunication. Facebook invested Rs.43574 Crore ( $ 570 Crore) in the Reliance Jio's share which is 9.9 %
It results a rise in the shares of the Reliance Jio Platforms Ltd and also in the share market also. This is considered as a small step in the alliance of the two big giants in the business.
This is the first time that a technology company invest in the way which doesn't get the authority ( minority share).And also it is the biggest investment in the technology sectory by a foreign company.
As a result of this investment, the share price of the Reliance Industries Ltd (RIL) by 10.30% and also benefit for the share market also. The Sensex closes at 31379.55 by increasing 742.84 points and the nifty closes at 9187.30 by increasing 205.85 points.
In between the trading, the share price increased till 12%. 6.5 crore shares has been traded yesterday and the share value of the company increased ti 8.64 lakh.
The aim of the this alliance is to promote the small scale commerce with the whatsapp and the jio mart which is the eCommerce division of the Reliance. Small scale traders can communicate with their customers, take orders, payment system and the delivery also with this new initiative.
Along with the new scope of business in the Indian market by two big shots, there are also some doubts and worries about this. Every coin have two sides. While two giants entering the Indian market by aiming the small scale traders, it will be a confusion that it will be good for them or not. May be there is a chance to swallow the small scale trade by the giants and reap the profit.
Facebook can grow their roots into the Indian soil with the help of the reliance group which have a great potential. Facebook may want to increase their business into various sectors or want to change the habits of the people and reap the profit.
Banks and financial institutions who gave financial support to Reliance group and the telecommunication sector became happy in this moratorium announced period.
Even though, the investment of the Facebook in the Reliance Jio gave a positive impact in the Indian share market, the mutual funds and gave a new hope of development in future.
Few days before, RBI announces that our financial crisis will end and rise more powerfully, here it started. Lets hope for the best and support my friend's blog ladagramam.
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