Reliance Industries shares rally 12 per cent on Monday
The stock surge followed strong second quarter earnings and added nearly Rs 2 lakh crore to the company's market capitalisation.
Reliance Industries shares staged a 12 per cent rally on Monday, closing at Rs 1,300 apiece, according to the Economic Times. The surge, the company's biggest single-day gain since April 2020, occurred after the Mukesh Ambani-led conglomerate reported its second quarter earnings for the July-September quarter of FY27.
The oil-to-chemicals conglomerate reported a 41 per cent year-on-year rise in consolidated net profit to Rs 25,548 crore, up from Rs 18,165 crore in the same quarter last year. Revenue from operations increased 29 per cent year-on-year to Rs 3.32 lakh crore, compared to Rs 2.58 lakh crore in the previous year.
Apurva Sheth, Head of Market Perspectives and Research at SAMCO Securities, noted that the rally was accompanied by an extraordinary volume breakout. Sheth said the stock decisively broke above a prolonged downward sloping trendline, suggesting selling pressure may be giving way to fresh buying interest.
V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said a massive delivery based buying of around Rs 6,413 crore triggered significant short covering. He noted that such sharp surges in mega cap stocks can occur when massive value buying and short covering happen together.
International brokerages maintained 'Buy' ratings following the results. Jefferies set a target price of Rs 1,710, while Nomura reduced its target price to Rs 1,560. The company's shares were trading almost flat on Tuesday at around Rs 1,295 on the NSE.