Stocks to buy today | Stock market today | Reliance share price target: Following crude oil prices and the US bond yield remaining at the elevated levels, the key benchmark indices of the Indian stock market opened lower for the fifth straight session. The Nifty 50 index opened lower at 22,524 and touched an intraday low of 22,387 within a few minutes of the Opening Bell on Monday. The BSE Sensex opened downside at 72,990 and touched an intraday low of 72,514. However, both indices recovered sharply following the bottom fishing. This fall, during the early morning session, Reliance Industries shares touched an intraday low of ₹1,174.50 per share on the NSE. However, the Nifty and Sensex heavyweights soon came into the bulls' sights and turned green.
Pointing towards the US Secretary of State Marco Rubio meeting Mukesh Ambani, Avinash Gorakshkar, Founder of Avinash Mentor Research, said, “Though it is no official confirmation, but Marco Rubio meeting Mukesh Ambani is expected to focus on the refining business, as a good number of refiners have gone out of business in the Middle East due to the prolonged US-Iran war. After the regime change in Venezuela, crude oil production is expected to jump from the current 1 million barrels per day to around 2.5 million barrels per day. However, Venezuelan crude oil is thick, and only a limited number of refiners can process it; RIL is one of them. Reliance Industries is already refining the Ural crude oil, imported from Russia, which is almost the same as Venezuelan crude oil.”
Gorakshkar said that the market is pricing Venezuelan crude oil for RIL at a discount, as with Russia, which will strengthen RIL's refining business and lead to a healthy balance sheet for the company.
Pointing towards a catch behind the soaring crude oil prices, Anuj Gupta, a SEBI-registered market expert, said, “When the US-Iran war began, Brent Crude oil price was at $72 per barrel and diesel price in the international market was around $110 per barrel. Today, after nearly eight months of the US-Iran war, Brent Crude oil prices have risen to around $115 per barrel, while diesel prices have touched $200 per barrel. So, the gap between the crude oil and diesel oil price has widened from $38 per barrel to around $90 per barrel, a big surge in the business of the OMCs and oil refiners, which nobody is talking about amid soaring crude oil prices.”
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