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Informist, Monday, Apr. 28, 2025

By Anjana Therese Antony

MUMBAI – Bullish bets were placed in the derivatives segment of Reliance Industries after the company reported a higher-than-expected bottom line for the March quarter. Following the results, various broking firms have given optimistic views about the stock as well as the company. Premiums on out-of-the-money call options of Reliance Industries expiring May 29 rose, while those on put strikes declined, indicating that the stock is likey to rise further in the short term.

On Monday, shares of the company closed 5.3% higher at INR 1,368.80 on the National Stock Exchange. The stock has risen nearly 6% in the past seven days and a little over 7% in 30 days. The volume of the stock traded on the bourse was up 115% from Friday at 31.10 million.

In the options chain of Reliance Industries expiring in May, premiums on INR 1,360-INR 1,520 call options rose 85-157% and those on INR 1,360-1,200 puts declined 61-68%. The highest open interest addition was at the INR 1,520 call and INR 1,300 put options. Traders also added long positions in the futures series, with open interest in the May futures rising 5.9% to 117.51 million and that in the June series increasing nearly 29% to 3.09 million. 

The oil-to-chemicals giant posted 2.4% on-year growth in its Jan-Mar consolidated net profit to INR 194.07 billion, beating the Street's expectation of a 3% fall to INR 189.51 billion. The company's consolidated revenue rose 9.9% on year to INR 2.65 trillion, also higher than the expectation of INR 2.39 trillion.

At least three broking firms retained their 'buy' rating on the stock seeing the company's robust growth across segments. Nomura Global Markets Research maintained its 'buy' view and raised the target price on the stock to INR 1,650, from INR 1,600. However, it reduced its estimates for earnings before interest, tax, depreciation, and amortisation for the financial year 2025-26 (Apr-Mar) and FY27 by 1-2% to factor in marginally lower EBITDA for the energy business on lower upstream volumes and modestly higher EBITDA for the retail business, it said in its earnings review on the company. Reliance Industries is Nomura's top pick in the energy sector in India. 

Reliance Industries has the third-highest weightage of 8.12% in the Nifty 50 and the surge in the stock pushed the 50-stock index 0.4% higher Monday. The Nifty 50 closed 1.2% higher at 24328.50 points. The near-term support for the index is pegged at 24300-24280 points and resistance at 24500-24600 points. The index is expected to reach 24600 points ahead of its weekly expiry Wednesday as investors are likely to have factored in most of the negatives related to tariffs and slowdown in earnings growth.

A near-term relief for the market also includes the net inflow from foreign investors, who have been net buyers in the domestic market now for nine straight sessions, after having been net sellers for seven straight months starting September. Market participants will also continue to monitor updates on the tension between India and Pakistan following last week's terrorist attack in Jammu and Kashmir. 

--Nifty 50 May closed at 24453.10, up 314.00 points; 124.60-point premium to the spot index

--Nifty 50 Jun closed at 24562.00, up 318.60 points; 233.50-point premium to the spot index

--Nifty 50 Jul closed at 24689.00, up 322.60 points; 360.50-point premium to the spot index

Reliance Industries, RBL Bank, HDFC Bank, Hindustan Aeronautics, State Bank of India, ICICI Bank, Shriram Finance, Bajaj Finance, UltraTech Cement, Axis Bank, Maruti Suzuki India, TVS Motor Co., BSE Ltd., L&T Finance, Cholamandalam Investment and Finance Co., Bharat Electronics, IDFC FIRST Bank, KPIT Technologies, and Infosys were the most active underlying stocks on Monday.  End

Edited by Rajeev Pai

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