Reliance Industries

Reliance Industries may hit 1670-1680: Bose

Posted by : sanjay38000

reliance ind can touch 1112/- before going to make any upside.

Are we far or near to bottom?

Posted by : investor11

News headlines are
JET has removed 800 emplyee
Reliance retail removing their employee
Corporate earning disapointing
IIP no dismal
Gov strugling to improve liquidity
Short sellers rulling the game

DOW below 9000
No respite following 700 billion $ bailout package
Europian down by 5-7%
Asian peers no better
Emerging market dismal performance

What is the out look for Indian equity market?
Low PE multiple are looking expensive
Yesterday blue chips are looking midcap today.
Are we entering in to long term slow down compounded by world economy?
I see NIFTY to trade at sub 3000 level which may not be too far away
Expert please comment

Reliance Industries may hit 1670-1680: Bose

Posted by : MMB Messenger

Technical Analyst, Rajat K Bose is of the view that if the market were to really move up, Reliance will take it up and it may even hit Rs 1,670-1,680.

Are we far or near to bottom?

Posted by : investor11

Without FII do you think we can go up,if yes than at what level of Index you expect DII would be able to hold up the Indian market.?

Reliance is ready for bouncing back

Posted by : Lalitdeshpandey

sanjay38000,

Its life. man can never be destroyed.

Market bounce backs like a tennis ball,

so does every one.......

Are we far or near to bottom?

Posted by : panasonic

Dont search for bottom, market will turn to bullish when fii have reduced to large extent & only indians remains at considerable percentage in bluechip companies.

Are we far or near to bottom?

Posted by : investor11

News headlines are
JET has removed 800 emplyee
Reliance retail removing their employee
Corporate earning disapointing
IIP no dismal
Gov strugling to improve liquidity
Short sellers rulling the game

DOW below 9000
No respite following 700 billion $ bailout package
Europian down by 5-7%
Asian peers no better
Emerging market dismal performance

What is the out look for Indian equity market?
Low PE multiple are looking expensive
Yesterday blue chips are looking midcap today.
Are we entering in to long term slow down compounded by world economy?
I see NIFTY to trade at sub 3000 level which may not be too far away
Expert please comment

RIL----RPL

Posted by : Guest

I want to knw your openion about what is the chance of merger between RPL and Reliance industries?


Like it happend in past, the merger of reliance petrochemical, ilu/pilu and reliance petro and IPCL, later or sooner merged with Reliance industries.

Now I heared report or RPL is expecting to start commercial productionof it`s newly built refinary at Jamanagar.

As old and new plant are at the same location, and they are under same managemnt, what is chance of merger of two companies?
OR
RPL will wait till tax consession for new unit is fully utilised before merger.

OR

RIL RPL will marry soon to save excise and other tax.

What is your openion

High Risk, High Returns: Myth or Fact?

Posted by : panasonic

The stock markets are risky business. At least that’s the line most people who didn’t park their money in Dalal Street have maintained. But on the flip side, the argument is ‘no pain, no gain’… ‘no risk, no returns’. It’s an age-old dilemma... Damned if you do and damned if you don’t.

Take the case of Harsh . He’s an IT professional. He, like millions, invested in the stock market consistently during the bull-run. Over the last two years, he parked Rs 24 lacs in it. Today his portfolio has lost half its value. And he’s cursing his luck.

Harsh took higher risks in the hope of higher returns. Was he wrong?

`Quite`, says Financial Trainer Bharat Patel. "You may expect higher risks for higher returns, but that`s not always true. To get better returns, sometimes you need to reduce risk – not increase it."

How do you do that? Here`s an easy approach:

Keep the money you require in the short term (i.e. less than 3 years) in debt instruments.

And invest the money you require in the long term (i.e. like 7 years or more) in equity.

But resisting a ride on the crest of the stock market is tough. Especially when it soars. Blocking out exclamations of joy from those who see the value of their portfolios rise with the Sensex isn’t easy. The trouble only begins when markets do a U-turn and a tailspin all at once. Investors break into a frenzy, and ultimately, despair.

"If you have a long term view, why do you track the markets on an hourly basis?" asks Bharat Patel. True. An exercise in futility for all you do is die a million deaths – without hope of nirvana.

Then again, from another perspective, the markets going down are good for young investors. After all you have the opportunity to invest for the long term, getting stocks that you wouldn’t get – at unimaginable prices.

Indeed, with a long term vision, investing in a bearish market isn`t a risk, it`s an opportunity. Trading is risky, but not investing. As Warren Buffet says, "If you know what you are doing, there is no risk".

Think about it this way. Not taking a risk is also a risk. For one, the money that you keep under your pillow would erode all its value with rising inflation.

The idea then is to manage risk. Here`s how:

Study your portfolio from time to time, say every six months. And then identify your risks. Your risks will typically change over a period of time with changes in interest rates and inflation. Your default risk also changes when the company you’ve invested money in, goes bankrupt.

Set your goals… the crucial ones like retirement and the not-so-crucial ones like that Tag Heur watch you wanted to indulge in. That way, you’ll see how you can best reduce your risk.

Keep a balanced portfolio. Spread your risks across different asset classes. You should have money in a savings bank account, PPF, Fixed Deposits, Gold, Real Estate and Equity. Ensure you’ve allocated 50-60% in equity with a long term vision and the rest in other asset classes.

Remember! You can’t avoid risk. At best, it can be managed......

Wake up Dad.....wake up.....your house on Fire.......

Posted by : ch1rag

simple stop selling reliance start buying at this price which is really attractive stock is completely undervalued reliance will recover n so nifty n our market

Reliance Industries – Reasons for the fal

Posted by : vtycoon

Reliance Industries Ltd. (RIL) share price has plummeted by about 11% to Rs.1,350 per share today, which is way below promoter’s warrant conversion price of Rs.1,402 per share.



If one may recall, Mukesh Ambani, promoter of RIL had subscribed to 12 crores warrants of the company, to be converted into equal number of shares, at Rs.1,402 per share and total investment was Rs.16,824 crores. When we have seen many promoters not going in for warrant conversion or warrant subscription, this move had imbibed confidence into the market, when the same were converted, in the first week of October 08. Remember, Hindalco Industries promoters have allowed their warrant to get lapsed and have foregone Rs.130 crores paid by them at the time of warrant subscription, which were on 11th April 07, one day ahead of RIL warrant subscription by the promoters, viz. 12th April 07.



RIL share today though opened at Rs.1,465 against it previous day’s close to Rs.1,519, but fell to a low of Rs.1,327 and about 18 lakh shares were traded on BSE till 1 pm at an average rate of Rs.1,373 per share and while about 57 lakh shares on NSE at Rs.1,371 per share. This kind of fall in share price can happen only with delivery based selling, which may have been pressed by the institutional investors.



The stake of domestic mutual funds and insurance companies, in the company as at 30-09-08, is to the extent of about 9% with about 13 crores shares held by them. FIIs have been holding about 17% stake of the company, being 24.67 crore shares on that date, with 1,091 holders. Value of the investment at Rs.1,400 per share works out to Rs.34,000 crores being US $ 7 billion, of FII investors.



In view of FII selling of close to US $ 10 billion till date, in calendar year 2008, in the Indian market, it is feared that selling in RIL stock has been made by these FIIs only, on opening of the market. The same would get confirmed with FII datas to be released by the regulator in the next couple of days.



It is said that FIIs call to press sell button in the stock has nothing to do with the fundamental of the company but compulsion for them to mobilize liquidity at their end, by divesting stake in the frontliners. Due to this reason, we have seen a fall of about 11% in share price of TCS, as FII stake in TCS, as at 30-09-08, has been high at about 11%.



RIL share price was ruling at around Rs.1,400 per share in April 07, when the promoters have gone for warrant subscription, at an effective price of Rs.1,402 per share. RIL share had its 52 week high of Rs.3,252 per share, touched on 15-01-08 with low of Rs.1,327 having touched today. With RIL share price having moved past 3 K in January 08, everyone had praised the move of the promoters, as warrant subscription have made them richer by over Rs20,000 crores. At that time, it was found this to be a visionary move by the promoters as huge jump in the financial performance of RIL was expected, due to commencement of gas production by the company in KG D-6 block as also its subsidiary Reliance Petroleum, starting commercial production of its refinery at Jamnagar, way ahead of its scheduled date of December 08.



Now, the market is attributing reason for divesting the stake by FIIs due to concern on margins and profitability by RIL in the coming quarters. Expectations of fall in GRM due to softening crude prices as also steep fall in global petrochemical demand are seen as two main reasons. Though RIL has been able to maintain its volume and margin growth in Petchem segment, the same looks doubtful in the coming quarters. Even GRM, which has been ruling above $15 per barrel is likely to fall to $12 per barrel in Q2 and may head to touch in single digit by the end of 4th quarter of FY 09.



RIL for FY 08, had posted an EPS of Rs.105, before extraordinary items and mainly from its core business. EPS for June 08 quarter was placed at Rs.28.30 and it was expected that the same is likely to be about Rs.115,in FY 09, from its existing business thus giving a growth of slightly lower than 10% over FY 08. But now the same expectations may not hold true in view of concern stated above. Also it is expected that no significant contribution in FY 09 would come from RPL Refinery or KG Basin Gas Production. Both the projects would contribute in FY 10 only, may be for entire 12 months.



However, the contribution from both the new projects, in FY 10, though are difficult to assess now, but one can expect RIL to post an EPS of close to Rs.200 for FY 10. If we go by the same estimates the share is now ruling at a PE multiple of less than 7. Does this valuation makes the stock expensive?


In the scenario, we don’t think that fundamentals have any role to play when liquidity and sentiments are the dominating factors.

Garland me please Shankar Sharma!

Posted by : vaths0203

sir,

no analyst`s word should be taken at face value. another lady - sanju varma - also was talking of sensex hitting 25000 . now she is talking of lower levels as the markets are going through `revaluation`. instead of conventional 12x, 15x multiples for sensex, we are supposed to settle for 8x.

at the same time, i am curious to know why the companies with large reserves in the balance sheet, are not utilising the reserves to buy-back the shares and reduce the capital so that market also gets stability and shareholders who want to hold on to the shares benefit. instead of cribbing about erosan of market cap and pessimism affecting their business - should this not be the right way for companies to proceed ?

Next Down target

Posted by : My Multibaggers

Rs.1290/- to Rs.1350/- is next down level which RIL will breach in short term.

Take the best decisions.