 "Reliance Industries hits over 18-month high")
Reliance Industries (RIL) has moved higher by 4% to Rs 1,087, its highest level since June 18, 2014 on the National Stock Exchange (NSE).
In past two-months, the stock outperformed the market by gaining 17% from Rs 930 on November 13, 2015 as compared to 3.5% decline in the Nifty 50 index.
In past two-months, the stock outperformed the market by gaining 17% from Rs 930 on November 13, 2015 as compared to 3.5% decline in the Nifty 50 index.
RIL said a meeting of the board of directors of the company will be held on January 19, 2016, to consider and approve the standalone and consolidated unaudited financial results of the company for the third quarter / nine months ended December 31, 2015 (Q3).
RIL will continue to report higher gross refining margins (GRMs) thanks to a $1.5 a barrel improvement in the benchmark Singapore GRM to $8 a barrel.
Analyst at Sharekhan sees strong earnings traction in case of RIL, backed by an improvement in its GRMs and the benefit of capex incurred in the petrochemical and refining businesses.
“We expect RIL to earn a premium of around $3 per barrel (bbl) over Singapore GRM taking the Q3FY2016 GRM to $11 per barrel from $10.6 per barrel in Q2FY2016. The capacity addition in the high-margin petrochemical business would further boost the profitability,” the broking firm said in a Q3FY2016 earnings preview.
India Infoline expects RIL to report a GRM of US$11/bbl as compared to US$7.3/bbl reported in Q3 FY15 and US$10.6/bbl in Q2 FY16. Petrochemical prices too have seen a correction in line with the crude oil prices but we expect the spreads to remain flattish. Crude oil production from MA?1 field and gas production from KG?D6 field are likely to see flat trends during the quarter on a qoq basis.
At 02:21 p.m. the stock was up 3.5% at Rs 1,082 on the NSE as compared to 0.19% rise in Nifty 50 index. A combined 15.39 million shares changed hands on the counter on the BSE and NSE.
