Reliance Industries fell 1.89% to Rs 1,009.75 at 11:40 IST on BSE, with the stock sliding for the second day in a row on concerns that aggressive pricing by the company's digital venture may adversely affect its profitability in the near term.
Meanwhile, the BSE Sensex was up 75.40 points, or 0.27%, to 28,498.88.
On BSE, so far 2.72 lakh shares were traded in the counter, compared with average daily volume of 2.91 lakh shares in the past one quarter. The stock hit a high of Rs 1,035 and a low of Rs 1,007.35 so far during the day. The stock hit a 52-week high of Rs 1,089.50 on 15 January 2016. The stock hit a 52-week low of Rs 825.25 on 4 September 2015. The stock had outperformed the market over the past 30 days till 1 September 2016, rising 3.53% compared with 2.62% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 7.43% as against Sensex's 5.89% rise.
The large-cap company has equity capital of Rs 3243.11 crore. Face value per share is Rs 10.
Shares of Reliance Industries fell 2.73% to settle at Rs 1,029.15 yesterday, 1 September 2016, after Chairman Mukesh Ambani at the company's Annual General Meeting yesterday, 1 September 2016, announced the launch of digital services by Reliance Jio Infocomm (RJIL), a subsidiary of Reliance Industries (RIL). RJIL will launch of its digital services with Jio Welcome Offer which will be effective from 5 September 2016. As part of the Jio Welcome Offer, users will have access to unlimited 4G LTE data and national voice, video and messaging services along with the full bouquet of Jio applications and content, free of cost up to 31 December 2016. Domestic voice calls to any network across the country would be free for Jio subscribers even beyond the Jio Welcome Offer. Domestic roaming services would also not be charged separately. Average data prices would be around Rs 50 per gigabyte (GB), which would be amongst the lowest in the world.
In addition to fixed and wireless broadband connectivity offering superior voice and data services on an all-IP network, Jio will also offer end-to-end solutions that address the entire value chain across various digital services in key domains such as education, healthcare, security, communication, financial services, government-citizen interfaces and entertainment.
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Media reports suggested that the plans offered by Reliance Jio are highly competitive in nature, but at the same time they would not become meaningful revenue creator. Hence, it would be a drag on profitability, reports said. Reports added that investors will closely monitor the roll out and effectiveness of Reliance Jio, in conjunction with plans by competitors to tackle new scenario.
In 2015, RJIL successfully acquired the right to use 4G spectrum in 13 key circles across India.
On consolidated basis, RIL's net profit rose 18.1% to Rs 7113 crore on 15.2% decline in net sales to Rs 64990 crore in Q1 June 2016 over Q1 June 2015.
RIL is a diversified firm having presence in oil exploration, petrochemicals, retail and telecom sectors.
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