In these 11 consecutive sessions, Reliance gained nearly 13 percent, partly due to positive market condition and company's new tariff plans.
Reliance Industries continued its northward journey for the 11th consecutive session Monday. The stock has been consistently hitting fresh nine-year high, which helped it become the most valued company among listed entities.
In these 11 consecutive sessions, it gained nearly 13 percent, partly due to positive market condition and company's new tariff plans.
Today the stock rallied as much as 1.76 percent intraday to hit a high of Rs 1,558, the highest level since January 17, 2008 indicating investors' appetite for buying the stock has not ended.
The rally helped the stock cross Rs 5 lakh crore in market capitalisation at Rs 5,04,752.88, far ahead of TCS' Rs 4.73 lakh crore and HDFC Bank's Rs 4.3 lakh crore.
The consistent upside could be ahead of its Annual General Meeting that is scheduled to be held on July 21.
"Upcoming AGM on July 21 is the next key event to watch out for as it may provide more clarity on new legs to Jio's growth, i.e., Broadband and 4G feature phones," CLSA said in its report dated July 12.
While reiterating a buy call and target price of Rs 1,710 (implying 15 percent upside), CLSA said it believes investors will overlook initial losses during promotional periods and focus on subscriber retention and slow monetisation in coming months."
Reliance Jio last week announced new tariff plans for Prime members. Under Summer Surprise, Jio offered unlimited voice and 1GB daily 4G data for 112 days at promotional price of Rs303 after one-time annual membership fees of Rs 99 for Jio Prime. This has been raised to Rs 399 for 84 days for Prime members.
After making Jio's services paid from April 17, this is another step ahead to reduce discounts and improve monetisation in a gradual manner to ensure maximum retention from over 100 million subscribers acquired during the free service period, CLSA feels.
At 12:22 hours IST, the stock price was quoting at Rs 1,552.35, up Rs 21.30, or 1.39 percent on the BSE.Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.