RIL to remain in Rs 700-800 range: Standard Chartered

Reliance Industries (RIL) is going to remain in Rs 700-800 range, says Rahul Singh, Head of Equity Research, Standard Chartered Securities.

Singh told CNBC-TV18, "More than buyback, I think RIL is right now stuck in the middle of very weak near-term fundamentals or lackluster near-term fundamentals and when I say near-term, it is two years before we see an uplift but if you look longer ahead and look at FY15-FY16, there are three projects which are going to be commissioning, there is a likelihood of E&P production itself reviving. So I think the stock is in a no-man’s land or the stock is pretty much balancing these two factors of long-term growth coming back say FY15-FY16 onwards but near-term fundamentals not looking great and that is where buyback kind of comes and support this stock."
He further added, "The stock continues to be rangebound between Rs 700 and Rs 800, I think below Rs 700 is when investor should be looking at it from a value perspective and for longer-term but if people don’t have that kind of investment horizon, it will remain a trading stock between Rs 700 and Rs 800."