Reliance share price outperforms Sensex, Nifty 50 YTD. Buy, sell or hold? | Stock Market News

Reliance share price: Shares of India’s largest company by market capitalisation, Reliance Industries, have outperformed the Indian stock market benchmarks, the Sensex and the Nifty 50, year-to-date (YTD). Till September 4 close, Reliance share price has gained 17 per cent on the BSE this year against a 16 per cent gain in the Nifty 50 and 14 per cent gain in Sensex.

After reaching a 52-week low of ₹2,221.05 on October 26 last year, the stock posted gains for the next five consecutive months. This year, it has only declined in April (down nearly 2 per cent), May (down nearly 2 per cent), and July (down nearly 4 per cent). The stock hit its 52-week high of ₹3,217.90 on July 8, before facing profit booking. Currently, it trades 6 per cent below its 52-week high.

On Thursday, September 5, the stock opened at ₹3,039.45 against its previous close of ₹3,029.80 but slipped about 0.20 per cent to ₹3,023.95 during the session. Around 11:35 am, the stock traded 0.12 per cent down at ₹3,026.10, in sync with the equity benchmark Sensex, which was 0.10 per cent down at 82,267 at that time.

Meanwhile, the company’s board of directors is expected to announce the issue of bonus shares at a 1:1 ratio, marking Rreliance’s sixth bonus issue and the first since 2017.

Experts say the business growth plans of Reliance Industries will augur well for the stock. Addressing the company’s 47th annual general meeting (AGM) on August 29, Reliance Industries Chairman Mukesh Ambani said the company intends to double its value by the time it completes 50 years of functioning in 2027.

Chairman Ambani said Reliance Industries is firing up its five growth engines to double the group’s size.

Mint gathered expert opinions to provide insights into the prospects of Reliance stock. Here’s what they had to say:

Seema Srivastava, Senior Equity Research Analyst at SMC Global Securities

The traditional petrochemical business of Reliance Industries has been growing stronger and stronger.

The falling oil prices are expected to benefit the company’s margins as it would benefit directly from GRM (gross refining margins).

The company has forayed into the green business, and its other ventures, like Reliance Jio and Reliance Retail, have also started to contribute significantly to its balance sheet.

The recent telecom tariff hike will increase Jio’s ARPU (average revenue per user) in upcoming quarters.

Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi

“Reliance’s share price is looking bullish on the technical chart. If it closes above the ₹3,000 mark today, we can expect the Sensex heavyweight to touch ₹3,150 to ₹3,200 apiece soon,” said Dongre.

“Reliance shareholders are advised to hold the scrip with stop loss at ₹2,900 apiece. If the stock touches a new high, one can upgrade one trailing stop loss from ₹2,900 to ₹3,000 per share mark for ₹3,400 per share target. Fresh investors can also buy Reliance shares at the current market price of ₹3,200 per share target in the near term,” said Dongre.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.