RIL Stock Gains Close To 11% In 2-Days

Reliance Industries shares in today's trade (May 31, 2021) is again gaining by close to 5 percent at day's high price. The stock has scaled to an intra-day high of Rs. 2191.70 against the previous close of Rs. 2094.8 per share on the NSE.

RIL Stock Gains Close To 11% In 2-Days

Bullish sentiment around the stock's petrochemical business fuelled the stock's run up in the previous session. Also, in today's trade, when Nifty logged a fresh high of 15526.85, shares of Reliance Industries have been the top contributor for the Nifty's run up.

Bernstein, the research firm, even said if the current petrochemical business strength is able to sustain, then the company's EBIDTA can surge more than 50 percent.

Other triggers that are fuelling the run up in stock of Reliance Industries

1. Post the consolidation or the recent correction in stock price, Reliance Industries has become attractive in terms of valuation.

2. Improved fundamentals in the company's petrochemical business also would imply increased chances of stake sale of the company's O2C business.

3. On the technical front, the stock price of RIL has gone ahead of its 50-DMA and 200-DMA. Volume in the stock is also very high of 15,391,816 as of writing this copy.

4. Also, Reliance Industries' will receive in cash a sum of Rs. 13,281 crores on account of first call for the rights issue launched in May 2020. Of this amount, Rs. 106 crores appx would be paid towards share capital face value and the remaining shall be share security premium. With it Reliance Industries is close to becoming a debt free company.

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