RIL share price hit a fresh all-time high of Rs 2,574.65, rising 2 per cent on BSE in intraday after the company said that it has incorporated a new subsidiary in the UAE.
RIL share price hit a fresh all-time high of Rs 2,574.65, rising 2 per cent on BSE in intraday after the company said that it has incorporated a new subsidiary in the UAE for trading in crude oil, petroleum products, and agricultural commodities. The stock had hit a 52-week low of Rs 1,830 apiece earlier this year, since then RIL stock has soared over 40 per cent. Reliance International has been incorporated as a wholly-owned subsidiary in Abu Dhabi Global market, the United Arab Emirates (UAE). RIL said that it has invested Rs 7.42 crore (equivalent to $10 lakh) in cash in 10 lakh equity shares of $1 each of Reliance International Limited (RINL), a newly incorporated wholly-owned subsidiary in Abu Dhabi Global Market.
Analysts say that the RIL valuations look attractive as compared to its peers and more investment and expansion in the business have been the major factors for the surge in the prices of the stock. They expect another 5 per cent rally in the stock by December 2021. “On the charts as well, we have seen the reversal from very important support levels and indicators like RSI and MACD also supporting the further hike in prices. We can expect the levels to reach 2700 by the end of the year,” Gaurav Garg, Head of Research, CapitalVia Global Research, told Financial Express Online.
Reliance Industries Ltd, in June this year, had announced that RIL will invest in projects of Abu Dhabi National Oil Co. to produce chemicals that can be used for infrastructure and consumer goods. The investment in RINL does not fall within related party transactions and the promoter/ promoter group/ group companies do not have any interest in RINL, it said adding no governmental or regulatory approvals were required for the said investment.
In trading volume terms, 81,000 equity shares have exchanged hands on BSE, while a total of 30.70 lakh units have traded so far on NSE. Setting up of its subsidiary, Reliance International and due to current positive sentiment in the Jio and retail businesses, analysts said that Reliance hit a new record high in today’s trading. “Technically, 2570 remains a strong resistance above which upside targets of Rs 2615-2680 are possible. Rs 2500 remains a strong support and should be a good stop loss for traders and investors alike,” AR Ramachandran, Co-founder & Trainer, Tips2Trades, told Financial Express Online.
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