Reliance shares | RIL shares | Jio Platforms IPO | Reliance Jio IPO: Amid the bull trend in the Indian stock market, Nifty and Sensex heavyweights Reliance Industries Ltd (RIL) shares witnessed a sharp upside move on Thursday. Reliance shares opened with an upside gap at ₹1,185.20 on the NSE and touched an intraday high of ₹1,212.50 per share, clocking an intraday gain of over 3%.
According to stock market experts, RIL share price rally can be attributed to three basic reasons: Jio Platforms IPO RHP filing, buzz for lowering expenses, fueling profit and margins; and Reliance Jio value unlocking, giving a clear picture about the RIL's stake in the Jio Infocomm and Jio Telecom. They said that Reliance shares still possess some steam and can touch ₹1300 in the near term.
On the primary reason fueling the RIL share price today, Avinash Gorakshkar, Founder of Avinash Mentor Research, said, “Jio Platforms IPO RHP filing has made some clarity in the investors' mind about the RIL's shareholding in the Reliance Infocom and Reliance Telecom. The market is also expecting debt reduction from the net proceeds, leading to lower interest payments. This has triggered a rise in profit and margins of the entire Reliance Group companies, including Reliance Industries.”
Gorakshkar said that Reliance Jio is expecting around ₹30,200 crore from its Jio Platforms IPO, which is expected to reduce its borrowings and interest payment pressure. However, how much it is going to narrow down the holding-company discount would be an important factor to look at before making any investment decision, both in the upcoming IPO and in Reliance shares.
Speaking on the outlook of the RIL shares, Sumeet Bagadia, Executive Director at Choice Broking, said, “Reliance share price today has immediate and important support at ₹1,160 per share. The stock is looking positive on the technical chart and may try to touch ₹1300, once it breaks above ₹1260 on a closing basis.”