InvestorQ : What is really driving the strength in the Reliance stock?
diksha shah made post

What is really driving the strength in the Reliance stock?

Answer
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Mary Joseph answered.
1 month ago


The sharp rally in the Reliance stock in the last 4 years has also meant that the influence of RIL in the Nifty has increased substantially. From 3% in 2015, the RIL weightage in the overall market is up to 9%, a huge jump. RIL now accounts for 14% weight in the Nifty and also constitutes 9% of the stock exchange market cap as a whole.

What has actually driven the strength in the stock? In a way, Reliance was in the right place at the right time and its massive bet of using the profits of refining and petchem to push the digital agenda was a huge success. After the Jio stake monetization and the zero-debt plans, RIL has seen its market cap inch closer to $200 billion.

The stock has remained strong despite a spate of downgrades by the likes of Edelweiss and CLSA. The RIL stock hardly moved between 2009 and 2016 but showed tremendous traction after the launch of Jio. Today it is Jio Platforms and Reliance Retail that is driving growth in the group. Interestingly, most analysts have got their view on RIL wrong in last 4 years.