Oil-to-telecom conglomerate Reliance Industries' (RIL) market capitalisation rose by Rs 71,150 crore on Tuesday after the stock price jumped 9.7 percent to settle at Rs 1,274.75 per share on the NSE. The rally was the result of several key announcements made by RIL Chairman Mukesh Ambani at the company's 42nd annual general meeting.
Interestingly, the single-day gain in RIL's market cap was larger than the market cap of 19 of the 50 companies in the Nifty index as of August 13.
RIL's market cap rose to Rs 808,075.31 crore, just below Rs 825,318.25 crore of Tata Consultancy Services. The market cap of the other 29 companies range between Rs 74,000 crore and Rs 607,000 crore.
Mahindra and Mahindra, Tech Mahindra, Vedanta, Hero MotoCorp, Eicher Motors, Tata Steel, Tata Motors and Yes Bank were among the 19 firms, which have below Rs 70,000 crore market cap.
Intraday, RIL shares advanced as much as 12.10 percent to Rs 1,302.80 per share on the NSE. On the BSE, RIL shares settled at Rs 1,275 per share, up 9.72 percent from its previous close, after hitting 12.09 percent high at Rs 1,302.5 per share.
Ambani announced that RIL and major oil producer Saudi Aramco have signed a nonbinding letter of intent under which the Saudi company will buy a 20 percent stake in RIL's oil-to-chemical business at an enterprise value of $75 billion.
Moreover, Ambani said he plans to make Reliance Industries a zero-net debt company in the next 18 months. He also said Reliance Jio's high-speed internet service Jio GigaFiber will be launched on September 5.
Most brokerages turned bullish on RIL post the announcements and expected a re-rating in the stock soon. Morgan Stanley upgraded the stock to 'overweight' from 'equal-weight', saying that faster asset monetisation could surprise the street. Meanwhile, CLSA retained a 'buy' call on the stock, stating that the company has set the stage for the next leap for its tech and consumer businesses.
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