Markets

RIL’s m-cap back at $100 b; Sensex at new peak

Our Bureau Mumbai | Updated on July 12, 2018 Published on July 12, 2018

Nifty 148 points from all-time high

A slowdown in the economy is no matter for worry on Dalal Street: a sharp jump in the share price of Reliance Industries (RIL) lifted the S&P BSE Sensex, the key benchmark equity index, by 282 points or 0.78 per cent to close at a life-time high of 36,548.

The broader Nifty index of the National Stock Exchange (NSE), which is still 148 points away from its all-time high, closed the day at 11,023, a gain of 75 points, or 0.68 per cent.

RIL, after last week’s announcement to aggressively pursue optic fibre broadband and cable TV services, reclaimed its position in the $100-billion club after a gap of nearly 10 years. The company’s scrip rose 4.42 per cent to close at ₹1,082.

The rally in RIL shares has reportedly increased promoter Mukesh Ambani’s wealth to more than $42 billion. He owns 47 per cent of RIL, which has seen a bull run since the launch of Jio’s telecom operations in 2016.

Easing global crude oil prices boosted sentiment in India’s equity market. Brent crude fell to $73.40 a barrel during the previous trading session. “The level of 10,900 is the key support for Nifty index,” said VK Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities.

 

“The latest World Bank report, which stated that India had become the world’s sixth-largest economy surpassing France, triggered an upbeat start for equity markets on Thursday, which further strengthened with favourable global cues,” said Jayant Manglik, President, Religare Broking.

He added: “Things began falling in place with the upbeat start of the earnings season, but global negatives — the trade war scenario and [higher] crude oil prices may continue to cause trouble in between. While almost all sectoral indices are contributing to the rally, PSU banks, metal and media are still reeling [under] pressure. We reiterate our ‘buy on dips’ advice on the Nifty and suggest focussing more on stock selection.”

Axis Bank had rallied 6 per cent in the last five trading sessions on the back of news that the private lender’s board had short-listed candidates to replace MD and CEO Shikha Sharma.

In the US, the wider Dow Jones Industrial index opened with gains of more than 150 points. Tech index Nasdaq too was trading at a life-time high.

Published on July 12, 2018
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