Reliance Industries (RIL) rose 1.05% to Rs 1,584 after a foreign brokerage maintained a 'buy' rating with a target at Rs 2,010 per share.
Meanwhile, the S&P BSE Sensex was up 350 points or 0.86% to 40,931.51.The brokerage reportedly said that RIL's 45% of FY22 EBITDA is expected to come from telecom and retail, while 80% of incremental EBITDA aided from telecom and retail could drive further re-rating.
RIL on Thursday, 12 December 2019, announced that its subsidiary, Reliance Strategic Business Ventures (RSBVL), acquired 85% stake in NowFloats Technologies for Rs 141.63 crore.
Nowfloats Technologies was incorporated in India on Wednesday, 9 May 2012. It offers Software as a service (SaaS) solutions to Small and Medium Enterprises (SMEs) that enable them to get a digital presence. The other solutions of the firm include local content discovery platform, online business management suite, website promotion/marketing solutions, and various other offerings for SMEs. It has operations in India.
RSBVL plans to make an investment of up to Rs 75 crore, subject to achieving set milestones. The additional investment is expected to be completed by December 2020. Post the further investment, the shareholding of RSBVL would increase to 89.66% of the equity share capital of Nowfloats Technologies.
Shares of RIL gained 1.39% in three trading sessions to its current market price of Rs 1,584 from its recent closing low of Rs 1,562.20 on Tuesday, 10 December 2019.
In the past one month, shares of RIL jumped 7.60% to its current market price of Rs 1,584.
On the technical front, the stock's RSI (relative strength index) stood at 65.186. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was currently trading above its 50-day moving average (DMA) placed at Rs 1,466.63, as well as above its 200 DMA placed at Rs 1,330.33.
RIL's consolidated net profit soared 18.3% to Rs 11,262 crore on 3.6% rise in net sales to Rs 1,48,526 crore in Q2 September 2019 over Q2 September 2018.
RIL is engaged in refining, including manufacturing of refined petroleum products, and petrochemicals, including manufacturing of basic chemicals, fertilizers and nitrogen compounds, plastic and synthetic rubber in primary forms.
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