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RIL hits record high; gains 11% in four days

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Capital Market
Last Updated : Sep 10 2020 | 3:31 PM IST

Reliance Industries (RIL) surged 6.98% to Rs 2312, rising for the fourth consecutive trading session.

RIL has surged 11.29% in four trading days from its previous closing low of Rs 2077.4 on 4 September 2020. The stock jumped 8.45% in intraday trade today to hit a fresh record high of Rs 2343.90. The stock is up 170% from its 52-week low of Rs 867.82 hit on 23 March 2020.

RIL is currently trading at a market capitalization of Rs 14,67,033 crore. In the calendar year 2020, RIL is up 55% compared with 6% decline in Nifty 50 index.

On the BSE, 21.81 lakh shares were traded in the counter today compared with average daily volumes of 6.85 lakh shares in the past two weeks.

The counter attracted buyers after the media reported that RIL is offering to sell a roughly $20 billion stake in its retail business to Amazon.com Inc. Amazon has held discussions about investing in the conglomerate's Reliance Retail Ventures (RRVL) unit and has expressed interest in negotiating a potential transaction, reports added.

RIL on Wednesday (9 September) announced that US private equity firm Silver Lake will invest Rs 7,500 crore in RRVL. This investment values RRVL at a pre-money equity value of Rs 4.21 lakh crore. Silver Lake's investment will translate into a 1.75% equity stake in RRVL on a fully diluted basis.

Reliance Retail, a subsidiary of RRVL, operates India's largest and fastest growing retail business serving close to 640 million footfalls across its nearly 12,000 stores nationwide.

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On the technical front, RIL's RSI (relative strength index) stood at 72.925. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock is trading above its 50 and 100 days simple moving average placed at 2050.60 and 1794.89 respectively. These levels will act as crucial support zones in near term.

RIL is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.

The conglomerate reported a 31% jump in consolidated net profit to Rs 13,248 crore in Q1 June 2020 compared with Rs 10,141 crore in the corresponding period of last year. Consolidated total income for the quarter stood at Rs 95,626 crore, down 42.11% compared with Rs 165,199 crore year-on-year.

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First Published: Sep 10 2020 | 2:56 PM IST

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