Reliance Industries Shares Price Jumps Even When Sensex Falls; RIL denies Jio’s investment

RIL’s plan to reduce net debt at the end of this fiscal year and its subsequent action toward that goal have lured investors into action.

Reliance Industries raised the stock price on Thursday afternoon, rising more than 2%, while the leading Sensex index traded primarily in the red, even as RIL denied the rumor about talks with Microsoft for further investment in its arm. Jio telecommunications company. The stock of the telecommunications oil conglomerate RIL, controlled by the richest man in India, Mukesh Ambani, has made a remarkable recovery since hitting a low of Rs 883 a share on March 23. 1,470 each.

After selling equity stakes in Reliance Jio to social media giant Facebook and private equity firm Silver Lake, the operators said today there is news of discussion with Microsoft for further investment in Jio. A Reliance Industries spokesman denied the news. “The information is incorrect. There is no discussion with Microsoft, “said the spokesman.

RIL is favored by major brokerage firms with a buy rating in scrip. RIL’s plan to reduce net debt at the end of this fiscal year and its subsequent action toward that goal have lured investors into action. RIL’s decision to raise funds from the public through a rights issue of Rs 53,000 crore, the largest ever to enter the Indian market, also has optimistic analysts. “The rights issue along with the Jio-Facebook deal and the retail sale of fuel with energy giant BP are expected to help RIL accumulate a total of Rs 1.03 lakh crore,” said brokerage and research firm Motilal Oswal. on a recent note. The brokerage values ​​Reliance Industries at Rs 1,618 per share.

Another leading brokerage firm, Edelweiss Securities has a target price of Rs 1,678 per share for RIL due to better-than-expected gross refining margins. RIL has been able to consistently achieve better GRM compared to Singapore’s complex margins, due to increased complexity and efficient processing of crude. Seeing the recent surge in stock prices, HDFC Securities is a little wary of the shares, downgrading them to “add” from a “buy” rating, but still expects it to hit the target price of Rs 1,560.

The company’s retail and telecommunications segment has posted significant positive results that attract investors. Another stake sale by RIL could result in it achieving the goal of freeing itself from net debt or at least reaching that goal by the deadline. by Mukesh Ambani in August last year. After adding Facebook to his friends’ list, Mukesh Ambani has started working on local kirana stores across India for his JioMart platform. A deal with Microsoft could help RIL shift its game from an oil company to a technology, as experts hinted at posting the deal on Facebook.

• This story was updated with comments from the Reliance Industries spokesperson.

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