InvestorQ : What explains the sharp rally in the price of Reliance Industries stock on 28 May?
Mitali Bhutta made post

What explains the sharp rally in the price of Reliance Industries stock on 28 May?

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3 weeks ago
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Reliance Industries surged 6% on Friday 28 May, pushing markets higher, almost single handed. In its report, Jefferies had point out that profitability on petchem segment got a boost from polymer spreads touching decadal highs. Demand is supported by strength in downstream industries like automobiles, durables, consumer goods and packaging. Jefferies anticipates a 14% upside to consolidated EBITDA estimates for a sustained period.

Jefferies also expects sustained strong petrochemical performance which would make it much easier for RIL to sell a stake in its O2C or oil to chemicals business. This has been in works with Aramco for some time now.

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