Reliance Industries shares hit an all-time high as Dalal Street buzzed with Reliance Petrochemicals’ strong Q4 numbers on improving GRM (gross refining margin) in the recently ended March 2022 quarter. Extending its Tuesday’s rally for the second consecutive session, RIL share price today opened with a gap of approx. 17 per share 2657.10 each level on NSE and climbed to its intraday high 2731 level, approx 20 away from its all-time high 2751.35 per share level.
According to market experts, crude oil prices have remained positive during Q4 FY22 and hence Dalal Street is expecting strong quarterly numbers from the company, especially in Reliance Petrochemical Business on improvement in GRM in March 2022 quarter. He added that Reliance Jio’s results are also expected to improve as the market is expecting an increase in ARPU (average revenue per user) in the fourth quarter of FY 2021-22.
Highlighting the key factors driving Reliance’s share price in weak markets; Ravi Singhal, Vice Chairman, GCL Securities said, “Crude oil price has remained positive during Q4FY22. Hence, the market is expecting a major correction in GRM thereby consolidating Q4 results. Hence, the bulls continue with the last two sessions. Still investing money in RIL shares. Weak sentiments.” He added that the recent stake buyout from Reliance Retail in fashion line Abu Jani Sandeep Khosla is also a short-term reason for the rise in Reliance’s share price.
Resonating with the thoughts of Ravi Singhal; Motilal Oswal’s report on RIL share outlook says, “A decade ago, investors were worried about Reliance’s investments in both Jio and retail. However, RIL transformed both the businesses in such a way that they stood at par with the behemoth standalone segment in terms of EBITDA contribution. In fact, due to better prospects, Jio and Retail currently account for two-thirds of the total valuation.”
The brokerage report said that the recent announcement of RIL Chairman Mukesh Ambani to foray into green energy has also been received positively by the markets.
Ravi Singhal of GCL Securities expects this rally in Reliance Industries to continue after some consolidation saying, “Reliance Industries shares strong support After this sharp rise in the 2550 level and the stock is expected to remain intact during the expected consolidation. Those who have this stock in their portfolio can remain over the counter for the next 6-9 months and any downside at this stage will be a buying opportunity for the index heavyweights.” He added that the stock could go up. from 3200 3400 per share level in 6-9 months.
Reliance Industries jumped 1.3 per cent a day after Reliance Brands signed a deal to buy 51% stake in fashion label Abu Jani Sandeep Khosla.
Reliance Industries closed at a two-week high of 3.8% after Morgan Stanley included it in its global emerging market focus list, citing “multiple positive triggers lining up for the group to outperform”.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.