Shares of Reliance Industries outperformed the weaker broader markets and hit record highs in early trade today. RIL shares were up 1% 2,802, giving it a market cap of 19 lakh crore.
Reliance shares opened today with a close drop 20 per share but soon started climbing. Within minutes of ringing the bell, it reached a new lifetime high. 2,826 per share on the NSE, up nearly 1.25 per cent in morning deals. Meanwhile, became the first Indian company to hit the heavyweights of the Sensex. Also a market capitalization of 19 lakh crores.
According to stock market experts, the main reason for the Singapore GRM reaching a record high Reliance Industries share price rally and hit its market cap 19 lakh crore. He said that after every single US dollar increase in Singapore GRM, the earnings of Reliance Industries increase by approx. After 4 more Russo-Ukraine War, the Singapore GRM has risen from about $7 to $8.
On the reasons for the rise in Reliance’s share price and its market cap, Avinash Gorakshakar, Head of Research, Profitmart Securities, said, “This rally in Reliance shares can be attributed to rising GRM (gross refining margin) in Singapore. Reliance Industries Ltd. increase in earnings of Increase in GRM by $4 per dollar. As Singapore GRM shoots up around $7 to $8, the market is expected to strengthen in Q4FY22 numbers of Reliance Petrochemical business.”
Avinash Gorakshakar of Profitmart Securities said the rise in crude oil prices is the major reason for the rise in GRM as it is providing margin advantage to large petrochemical companies like Reliance.
echoing the thoughts of Avinash Gorakshakar; Santosh Meena, Head of Research, Swastika Investmart Ltd said, “Reliance Industries is firing on all cylinders as its petrochemical business is doing very well on the back of a jump in oil and gas prices, where Singapore GRM is at an all-time high Its telecommunications business is unaffected by geopolitical tensions and inflation, while it is exploring synergies in its retail business. It continues to expand its path in the renewable energy business, opening up more opportunities for the company. “
“Technically, Reliance Share has built a strong base The 2250 mark then saw a smart rally where it broke out of a descending channel formation, providing fresh bullish momentum. upwards, it has the ability to move towards 3000 marks. on the downside, 2500 should act as an immediate and strong support level.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.