Reliance Industries, India’s largest company by market capitalisation, has seen its stock price climb by 8% over the last 10 trading days, reaching ₹1,322 per share. This recovery is significant as the stock experienced a 20% drop from July to October due to heavy selling pressure.
The stock’s earlier decline was largely attributed to a 5-6% cut in the company’s earnings estimates for FY25, driven by weaker-than-expected results in the O2C (oil-to-chemicals) and retail segments during H1FY25. There was also uncertainty regarding the timeline for Jio’s listing, along with increased selling by foreign institutional investors (FIIs). FII holdings in Reliance fell by 112 basis points in October and by 169 basis points over the July-October period, bringing their stake to 22.5% in October 2024.
The potential future listings of Jio and retail businesses are expected to unlock significant value and may lead to a re-rating of the stock.
The outlook for petrochemical margins remains muted due to oversupply from China and weak global demand. However, refining margins are expected to remain strong due to growth in global oil demand. Despite concerns about China’s demand, refining capacity is growing more slowly than demand, which is a positive for Reliance’s refining business.
On Wednesday, 4 December, Reliance Industries (RIL) witnessed significant block deals involving the sale of 67.6 lakh shares, as reported by Bloomberg. These deals included two separate transactions—one for 44.4 lakh shares and another for 23.2 lakh shares.
While the details of the buyers and sellers involved in these block deals were not disclosed, the total value of the shares based on the closing price of ₹1,323.3 per share on 4 December amounts to over ₹890 crore.
Reliance Industries share price is currently trading at ₹1,317.20, reflecting a decline of ₹4.85 or 0.37% today as of 12:47 PM on 6 December. Earlier in the day, the stock opened at ₹1,315.25 and reached a high of ₹1,323.90. Over the past 5 days, the stock has seen a gain of ₹38.00, or 2.97%. Looking at its performance over the past year, Reliance Industries has gained ₹86.65, or 7.04%. Over the last 5 years, the stock has experienced a substantial increase of ₹547.60, or 71.10%.
RIL’s share price reached a 52-week high of ₹1,608.95 on 8 July 2024 and a low of ₹1,203.15 on 13 December 2023.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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