Lack of Clar­ity on Re­liance Jio Launch Date may Cap Up­side for RIL Shares

The Economic Times - - Companies: Pursuit Of Profit -

Mum­bai: Re­liance In­dus­tries (RIL) has sur­prised the Street with bet­ter-than-ex­pected March quar­ter earn­ings, but this may not trans­late into sharp gains for the stock Mon­day morn­ing. An­a­lysts said lack of clar­ity over the muchawaited launch of the con­glom­er­ate’s tele­com ser­vices may put a lid on gains in the short term. Po­si­tions in Re­liance In­dus­tries stock fu­tures and op­tions also in­di­cate that the stock is likely to see a rise of only 2-3% from cur­rent lev­els im­me­di­ately.

The petro­chem­i­cal be­he­moth re­ported earn­ings af­ter mar­ket hours on Fri­day. In re­sponse to the re­sults, the com­pany’s global de­pos­i­tory re­ceipt on the Lon­don Stock Ex­change rose 0.8% to $31.35. On Fri­day, the stock ended down 0.2% at ₹ 1,038.75 on BSE.

“On Re­liance Jio, we still have not got any clar­ity. The com­pany has said that the com­mer­cial launch should be within a few months, which can be three months or six months or nine months. GRMs in in­ter­na­tional mar­ket have also fallen in the last one month, which may also af­fect sen­ti­ment,” said Sudeep Anand, an­a­lyst at IDBI Cap­i­tal.

RIL said its tele­com unit aims to achieve 90% pop­u­la­tion cov­er­age be­fore start­ing com­mer­cial opera-


Newspapers in English

Newspapers from India

© PressReader. All rights reserved.