InvestorQ : Why was Reliance Industries sharply higher on 07 October trading?
Arusha Ray made post

Why was Reliance Industries sharply higher on 07 October trading?

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3 weeks ago
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If TCS had the results and buyback story running in its favour, the other big stock that moved the market on Wednesday was Reliance Industries. In fact, RIL gained over 4% on 07 October exerting enormous upward thrust on the Nifty and the Sensex.

RIL actually reacted very positively to the sale of stake in Reliance Retail Ventures to Abu Dhabi Investment Authority, or ADIA as it is popularly known. As a result, the Nifty closed at 11,738 and the Sensex closed at 39,878; within striking distance of the 40,000 mark.

With the sale of stake to ADIA, Reliance has managed to monetize close to 8.48% stake in Reliance Retail Ventures for a sum of Rs.37,700 crore valuing the entire retail franchise of Reliance group at close to $58 billion. Most investors had also invested in Jio Platforms.

However, the markets are showing some signs of caution with the A/D ratio at 1078/1596. This has been consistently slipping showing that the market is losing breadth. Also the volatility index or the VIX closed above the 20 level indicating some caution at higher levels.

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