INSUBCONTINENT EXCLUSIVE:
Mumbai: Reliance Industries Ltd (RIL) lost nearly Rs 1 lakh crore in market value in the past five sessions as the nervous mood in the
market and bearish commentary from some brokerages pulled the stock down 11 per cent
(TCS) regaining the spot for the first time since January 10.
Analysts said foreign portfolio selling in the past three days has weighed
Reliance, which has the highest weightage on the Sensex and Nifty50 indices, has been one of the biggest casualties of the outflow
in the market for the last few days
momentum later to end down 0.4 per cent at Rs 1,250.50
The market cap of TCS stood at Rs 8.01 lakh crore on Friday while that of RIL was Rs 7.93 lakh crore.
Morgan Stanley on Thursday downgraded
Reliance to equal-weight, saying that earnings growth is likely to halve in the current financial year after seeing a 17 per cent growth on
compounded basis in FY17-19 period
Earnings are likely to be hit due to lower availability of Venezuelan and Iranian crude and a glut in the polyester and gas
narrative after the positive triggers that have played out since 2017, Morgan Stanley said.
Analysts have also raised concerns over
taxes, depreciation, and amortisation) negative, Reliance has been retreating from US shale having already written off half of its $9.5
Reliance Jio Infocomm in terms of mobile revenue growth has narrowed, which is also weighing on the stock.
The Mukesh Ambaniled company had
reported a 9.8 per cent increase in net profit for the quarter ended March at Rs 10,362 crore
Gross refining margins narrowed to a 17-quarter low of $8.2 a barrel.
TCS, on the other hand, delivered better-than-expected earnings in the
fourth quarter and the IT sector is likely to outperform in a weak market, said Sofat
Shares of TCS have gained 12.8 per cent this year
To be sure, even after the latest drop, RIL is up 11.5 per cent so far in 2019, and for the last one year, the stock is up 27.5 per
few months, the stock is seeing profit booking but the intermediate uptrend has not changed
Sofat of IIFL said the stock would be a good buy at Rs 1,150.
