HomeBusinessDespite the roughly 6% gain, Reliance Industries' shares are only having their...

Despite the roughly 6% gain, Reliance Industries’ shares are only having their fourth best week of the year.

Last year, Mukesh Ambani’s pledge to turn Reliance Industries (RIL) from an energy behemoth to a technology-driven consumer conglomerate had the street licking his palms. Following the burst of investments, the euphoria subsided along with the lull.
However, as some of the promises become more true, RIL’s stock is heating up again. The stock of India’s largest conglomerate, which has holdings in everything from oil and gas to telecom and retail, has risen about 6% intraday, the most substantial increase in the stock in the previous two months.
As of 1 p.m., RIL shares had risen so much that they accounted for virtually all of the gains on the benchmark index, Nifty (May 28). It has increased by almost 2% during the previous week. RIL, on the other hand, is up 5.7 percent.

RIlo min

Investors should keep in mind, however, that this is still within the band of 1,900 to 2,200 that RIL has traded in since November of last year.
RIL is in the driver’s seat on the telecom, retail, and digital fronts, according to a Bank of America Global Securities research dated May 19, 2021. “Overall, we believe RIL is well positioned in its consumer business: telecommunications, retail, and digital to profit in future years as it achieves traction and scale,” according to the research.
This is the fourth time this year that Reliance’s stock has gained more than 4% in a single week.

PeriodGains in RIL share price
Week ending January 15, 20217.08%
Week ending February 5, 20216.83%
Week ending April 23, 20216.17%
Week ending May 28, 20215.71%
Week ending May 14, 20213.78%
Source: BSE

Google will collaborate with Reliance Jio to develop low-cost smartphones.

The revelation of RIL’s relationship with tech giant Google for a low-cost Jio smartphone might have been one of the catalysts for the significant rise in RIL’s stock price.
According to a report by PTI, Google Chief Executive Officer (CEO) Sundar Pichai said that development on the low-cost Jio smartphone has begun.
In July of last year, Google paid Rs 33,737 crore for a 7.7% share in Jio Platforms. The two have teamed up for Jio’s “2G-mukt Bharat” (2G-free India) plan, in which Google will assist Jio in developing a low-cost smartphone based on either Android or Kai.

Platforms by Jio, Infibeam has submitted an application for a NUE licence.

According to Infibeam, Reliance’s digital services arm Jio Platforms and the latter have struck an agreement and sought for a New Umbrella Entity (NUE) licence.
If authorised, Jio and Infibeam would be able to launch a payment platform. This platform would be for profit, with the licence holder having the ability to charge for transactions.



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments