InvestorQ : Why has Reliance stock rallied so sharply in the last one month?
Mary Joseph made post

Why has Reliance stock rallied so sharply in the last one month?

Arusha Ray answered.
1 year ago

You are absolutely right that the stock of Reliance Industries has rallied 11% in the last one month when the Nifty was up around 8.7%. More importantly, the stock of Reliance has touched a 11-month high in the midst of the rally in the Nifty and it remains one of the best performers among the heavyweights. There are two likely triggers for this sharp rally.

1) Firstly, Reliance has reportedly been in talks to take a controlling stake in REC Group of Norway. Now, REC is one of the largest manufacturer of solar modules and is perfectly in sync with the green energy plans of Reliance O2C business. REC Norway also has connections with China National Chemical Corporation and the deal is estimated to be worth nearly $1.2 billion. However, Reliance has not yet confirmed this report.

2) The second big development pertains to Reliance Retail Ventures, the retailing arm of Reliance Industries. RRVL has acquired full control over recently acquired Just Dial and RRVL will be now classified as the promoter group. However, VSS Mani will continue to manage daily affairs of Just Dial. The deal gives RRVL a database of 3.04 crore listings and consumer traffic of 12.91 crore quarterly unique users. Both are value accretive.