InvestorQ : ril is down or up? after election , its down is 1000? what is your opinion
Ashwini Kadam made post

ril is down or up? after election , its down is 1000? what is your opinion

Answer
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Mahima Roy answered.
1 month ago


I think you are referring to the US elections out here. Frankly, I am not sure what could be the big impact that the US elections could have on the Reliance Stock except for the fact that RIL is planning to raise funds for the Jio IPO later date via a possible US IPO.

However, even in the peak of the panic over COVID and the aftermath of the pandemic, RIL managed to raise close to $21 billion from mostly US investors for its digital venture. I don’t think the election in the US would have any bearing on the stock at all.

The only concern for the stock could be that it has rallied just too much in a short span of time. For example, RIL is up nearly 165% from the lows of March 23rd in a little less than 6 months. Also, the P/E ratio of Reliance is at 37X, much higher than the 30 P/E of Sensex. This is the highest P/E that RIL has quoted at.

Your investment strategy should essentially be to buy the stock on dips rather than jumping at this price. In the midst of any volatility, if you get a dip of even 10%, it is worthwhile using the corrections to buy more into Reliance Industries.