Financial Daily from THE HINDU group of publications
Wednesday, Oct 01, 2003
Financial Daily from THE HINDU group of publications Wednesday, Oct 01, 2003 |
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Markets
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Stock Markets Info-Tech - Stocks Telecom biz rings right note for RIL Jayanta Mallick
Kolkata , Sept. 30 THE Reliance Industries stock was behind the upward climb of the Sensex on Tuesday as the counter created its new 52-week high on institutional buying. The stock improved by 2.2 per cent and garnered 34.1 lakh (26.36 lakh) shares on the Bombay Stock Exchange. On the National Stock Exchange, it recorded a volume of 77.92 lakh (49.24 lakh) shares. According to dealers, the counter's turnover in the cash segment was higher on Tuesday morning than in the F&O segment. However in the second half, derivatives turnover picked up and at close it was near double the cash market figure. According to brokers and fund managers, a section of market players was very optimistic about the group's growth in oil, petrochem and telecom businesses in the long term. This is particularly so after Mr Mukesh Ambani was quoted recently by the Financial Times as saying Reliance Infocomm has already broken even and "in the conventional sense and fully audited sense of the term, we will be in net profit within the next two quarters". "This is a great fillip for the stock as it was earlier discounted that the Reliance group may take longer to put the telecom business on the rails and could prove to be a drag on the group's profitability. As it is, RIL's oil exploration and petrochem business is going ahead steadily," said a manager of a foreign fund. In fact, as the group's telecom business indicated to provide a certain amount comfort factor early this month, a number of foreign institutions began putting out buy recommendations. According to Mr Ketan Thacker of Anagram Stockbroking, at Tuesday's closing price, the stock traded at 15.1 times its 2002-03 earnings per share of Rs 29.40. The market is likely to value the stock upward considering the improved prospect for the telecom venture. RIL has sizable investment in Reliance Infocomm along with personal investments of the promoters.
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