Facebook's Rs 43,574 crore investment is not a giant deal, considering the money spent to create Reliance Jio, but is an important one at a time when coronavirus has destroyed economies and businesses. Oil slumped to less than $16 a barrel on Wednesday, hitting its lowest since 1999, with the market awash with excess supply as the economic fallout from the coronavirus pandemic hammers demand fuels. India's unemployment rate rose to 26.2 per cent in the third week of April amid coronavirus lockdown, Centre for Monitoring Indian Economy (CMIE), said. Read for more top stories from the world of business and economy:
RIL has invested nearly Rs 4 lakh crore since 2010 to create the Jio digital ecosystem. However, the deal will help Mukesh Ambani to execute his plan to make RIL a net debt-free company.
Brent crude, which fell 24% in the previous session, touched $15.98 a barrel, its lowest since June 1999. It was trading down 62 cents, or 3.2%, at $18.71.
WTI crude oil price drop: The crash in prices is a windfall for the Indian government. Thanks to the sharp fall in crude price, India will have savings of more than 4 times its annual health budget.
The rate of unemployment in rural India stands higher at 26.7 per cent as against urban 25.1 per cent.
A 10 per cent correction in crude prices is expected to increase earnings by 4 per cent for the paint companies with other things remaining the same.