RIL shares soar 7%, kiss Rs 2,900-mark; stock adds Rs 1.2 lakh crore m-cap in single day

Shares of Reliance Industries Ltd (RIL), India's most-valued company in terms of market capitalisation (m-cap) soared 7 per cent in Monday's trade to hit record high level. The oil-to-telecom major in fact added Rs 1.20 lakh crore to its m-cap intraday, hitting Rs 19,53,253.43 crore today from Rs 18,33,737.60 crore on Thursday. The rise in shares of RIL was accompanied by high turnover, with the scrip seeing Rs 2,832.59 crore worth RIL shares changing hands on NSE in the day so far.

RIL shares soared 6.99 per cent to hit a high of Rs 2,900 on BSE. Reliance Industries, along with ONGC, helped the BSE Oil & Gas index rally 4.8 per cent intraday, with technical charts turning positive on the index.

Reliance Industries is Nomura India’s top pick in the oil & gas sector. The brokerage noted that the outlook for RIL across segments remains optimistic. It said growth of consumer businesses remains robust: Reliance Retail underpinned by store additions, strong growth of digital/ new commerce and operating leverage; and Jio underpinned by tariff hikes post central elections and robust growth of subscriber additions with steady growth of market share.

Besides, the foreign brokerage in a recent note said the O2C segment will benefit from strong global oil demand growth of over 1.2mn b/d in 2024 and upstream has ramped up strongly and will continue its strong performance in FY25.

RIL will further benefit from its robust FCF generation of Rs 30,000 crore in FY25F, declining capex levels to about Rs 1.25 lakh crore and declining debt levels to Rs 2.7 lakh crore, Nomura India said.

"The latest breakout in the oil and gas index has propelled the sector into positive territory. The recent consolidation in the Nifty Oil and Gas index concluded with an upside breakout, indicating an increased optimism in the space that may persist in the coming days. Therefore, the sudden surge in energy stocks might continue to bolster the headline index in the short term," said Rupak De, Senior Technical Analyst, LKP Securities.

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