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