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Reliance Industries Ltd (RIL) on Friday became the first Indian company to reach a market capitalisation of Rs 11 trillion as its shares doubled since mid-March. The stock rallied to hit a record high of Rs 1,738.95 on the BSE, up about 5 per cent from Thursday’s close.
The stock price jumped as the Mukesh Ambani-led firm, earlier today, said it was now net-debt free owing to fundraising to the tune of Rs 1.15 trillion through the sale of 24.71 per cent stake in its digital services arm, Jio Platforms Ltd (JPL), to 10 global investors.
“With little earnings momentum in the near term and the key de-leveraging news flow out of the way, we would expect the stock to consolidate in the near term: While Refining and Petchem should recover from 1Q lows, the environment should remain subdued for the next 2-3 quarters. News flow on de-leveraging would remain key in the near term”, the JP Morgan report said.
Recently, Bloomberg had reported that RIL plans to buy a controlling stake in Kishore Biyani’s Future Group, which JP Morgan finds surprising given RIL significant presence in retail.
