Reliance leads Nifty decline after Musk’s ‘Oligarch’ jibe rattles telecom investors
Mumbai, Oct 8 (IANS) Indian stocks slipped on Thursday, with Reliance Industries emerging as the biggest drag on the benchmark Nifty 50 after a social media post by US billionaire Elon Musk renewed investor concerns over the intensifying battle for India’s satellite broadband market.
Shares of Reliance, which has a close to 9 per cent weight in Nifty, slid sharply, wiping billions of dollars from the conglomerate’s market value and erasing over $2 billion from Chairman Mukesh Ambani’s personal fortune, according to provisional market estimates.
The decline came after Musk alleged on X that unnamed “oligarchs” were obstructing Starlink’s entry into India, comments widely interpreted by the market as a reference to the country’s dominant telecom incumbents.
The reaction comes at a sensitive time for Reliance, which is preparing for the long-awaited public listing of Jio, one of India’s most anticipated IPOs.
Investors fear that the renewed spotlight on Starlink’s India ambitions could intensify competition in broadband, satellite connectivity and digital services, areas viewed as important long-term growth drivers for Jio.
Starlink and Jio are increasingly seen as potential rivals in next-generation connectivity, especially in rural broadband, enterprise solutions, and satellite communications. Analysts said Musk’s remarks injected uncertainty into a sector that investors had largely viewed as insulated from global disruption.
The market reaction also revived the debate around Jio’s proposed valuation. Bloomberg has previously reported that valuation expectations for the IPO have been moderated from around $140 billion to approximately $114 billion as bankers sought to improve investor appetite. That implies a reduction of roughly 21 per cent.
Sunil Mittal-led Bharti Airtel, another major telecom player with exposure to satellite broadband through OneWeb, also declined 2.1 per cent amid sector-wide pressure.
Reliance was joined on the list of major Nifty losers by several heavyweight stocks including Adani Enterprises, ITC, Adani Ports, and Indigo, reflecting broader risk-off sentiment across the market.
–IANS
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