On January 29, 2024, Reliance Industries (RIL) witnessed an impressive surge of over 7 per cent, propelling its share price to a historic high in intra-day trading. As the oil-to-telecom conglomerate took the lead, it emerged as the top gainer and significantly contributed to the robust performance of both Indian benchmarks, Nifty and Sensex.
Market Rally and Global Cues
The substantial rise in RIL and positive global cues fuelled a formidable upswing in the Indian market. Sensex and Nifty experienced significant gains, closing the day with impressive jumps of almost 2 per cent each. Sensex concluded at 71,941.57 points, up by 1.76 per cent, while Nifty settled at 21,737.60 points, reflecting a gain of 1.8 per cent.
Technical Analysis and Outlook
Rahul Sharma, Director, Head – Technical & Derivatives Research at JM Financial Services, noted the strong market rebound following a recent correction. He highlighted the significance of the 21,750 level as a robust resistance for Nifty, predicting a potential cool-off around this mark. On the downside, key support levels were identified at 21,137 and 20,870.
Reliance’s Remarkable Performance
Reliance Industries’ share price reached a record high of ₹2,905 during intra-day trading, marking a 7.2 per cent surge. The company’s market capitalization crossed ₹19.5 lakh crore, with the stock closing 6.86 per cent higher at ₹2,896.15. This surge resulted in a one-day addition of over ₹1 lakh crore to its market capitalization, the most significant single-day gain since September 2020.
Global Ranking and Market Capitalization
After the surge, Reliance Industries secured the 44th position among the most prominent companies globally by market capitalization, jumping three ranks from the previous session. In dollar terms, Reliance’s market capitalization stands at $236.28 billion, surpassing companies like Accenture, Pepsico, and Roche.
Indian Stock Market Hierarchy
Reliance Industries holds the title of the most valued company in the Indian stock market, with a capitalization of ₹19.5 lakh crore. TCS, HDFC Bank, ICICI Bank, Infosys, Bharti Airtel, HUL, ITC, and SBI follow it.
Reliance’s Stock Performance
Over the last year, Reliance’s stock has risen by 28 per cent and recorded a 12 per cent gain in January alone, extending its positive momentum for the third consecutive month. The stock has shown remarkable growth in the longer term, surging by 53 per cent over the last three years.
Financial Highlights
In the third quarter of FY24, Reliance Industries reported an 11 per cent YoY increase in net profit, reaching ₹19,641 crores. The company’s gross revenue for Q3FY24 increased by 3.2 per cent YoY to ₹2,48,160 crore, with continued growth in consumer businesses driving the revenue.
The earnings before interest, taxes, depreciation, and amortization (EBITDA) for the December quarter rose by 17 per cent to ₹44,678 crore, fueled by the retail and oil and gas segments.
Summary
Reliance Industries’ outstanding performance has not only positioned it as a critical player in the Indian stock market but has also elevated its global standing. The company’s ability to consistently deliver positive returns, coupled with its impressive financial results, underscores its significance in the ever-evolving landscape of the business world.
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