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Reliance Industries Shares At Record High, Market Cap Crosses ₹19 Lakh Crore | Mint – Mint

Shares of Reliance Industries shrugged off weak broader markets and hit record high in early trade today. RIL shares were up 1% to 2,802, giving it a market cap of 19 lakh crore. 

Reliance shares today opened with downside gap of near 20 per share but soon started to climb. Within few minutes of opening bell it went to hit its new life-time high of 2,826 per share on NSE, logging around 1.25 per cent rise in early morning deals. During this course, the Sensex heavy-weight went on to become first Indian company to hit 19 lakh crore market capitalization as well.

According to stock market experts, Singapore GRM surging to record high is the major reason for Reliance Industries share price rally and its market capital hitting 19 lakh crore. They said that after rise of every one US dollar in Singapore GRM, Reliance Industries earning goes up by around 4 and in post-Russia-Ukraine war, Singapore GRM has surged by around $7 to $8 dollar.

Speaking on the reason for rise in Reliance share price and its market capital, Avinash Gorakshkar, Head of Research at Profitmart securities said, “This rally in Reliance shares can be attributed to rising GRM (Gross Refining Margin) in Singapore. Reliance Industries Limited’s earning grows by around 4 per dollar rise in GRM. As Singapore GRM has shot by around $7 to $8, market is expecting strong Q4FY22 numbers of Reliance petrochemical business.”

Avinash Gorakshkar of Profitmart Securities went on to add that soaring crude oil prices are the big reason for rise in GRM as it is providing margin benefit to big petrochemical companies like Reliance.

Echoing with Avinash Gorakshkar’s views; Santosh Meena, Head of Research at Swastika Investmart Ltd said, “Reliance industries is firing on all cylinders because its petrochemical business is doing extremely well on the back of a surge in Oil and Gas prices where Singapore GRM is at an all-time high. Its telecom business is unaffected by geopolitical tension and inflation whereas it is exploring synergies in its retail business. It is continuously expanding its path in the renewable energy business that opening more opportunities for the company.”

“Technically, Reliance share has created a strong base at the 2250 mark then witnessed a smart rally where it has broken out of falling channel formation which is leading to fresh bullish momentum. On the upside, it has the potential to move towards the 3000 mark. On the downside, 2500 should act as an immediate and strong support level.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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