RIL retreats after crossing Rs5 lakh crore M-cap on Monday
18 July 2017
Reliance Industries Limited (RIL), the most valuable firm on the bourses, retreated from its market highs on Tuesday after crossing Rs5 lakh crore market capitalisation for the first time in its trading history on Monday.
The Mukesh Ambani-led company is now the second company after Tata Consultancy Service (TCS) to reach the Rs5,lakh crore market cap. TCS is now the second most valuable company in terms of market-capitalisation.
The market cap of the company stood at Rs5,04,458.09 crore on BSE when the markets closed for trading on Monday.
RIL scrip surged for eleven consecutive sessions, climbing 12.4 per cent. The stock closed at Rs1,551.35 on BSE, up 1.33 per cent from its previous close while RIL's market cap stood at Rs5,04,458 crore.
On Tuesday morning trade, however, Reliance Industries snapped its 9-day winning streak after the market opened in negative territory. The RIL scrip was down Rs31.45 or (2.03 per cent) at Rs1519.90 against the previous day's close of Rs1551.51.
Shares of RIL have been on the surge since the launch of its telecom unit Reliance Jio Infocomm in September last year and hit all-time highs multiple times last week when the markets saw a bullish run.
The RIL stock has gained consecutively for the last 11 trading sessions during which it has managed to gain almost 13 per cent.
Reliance Industries is slated to announce its earnings for the first quarter (April- June) on Thursday and hold its annual general meeting the day after. Analysts expect the focus, both in terms of the June quarter numbers and the AGM to be on the company's telecom business Reliance Jio.
In April, Reliance Industries raised its proposed capital expenditure on Reliance Jio by Rs18,000 crore in the current quarter, adding to the Rs1,79,000 crore that it had already invested in the venture so far.
Reliance Jio had also said that it would add another 100,000 towers to the existing network of 100,000 mobile towers. It is also in the process of launching optical fibre based home broadband services under the name of 'Jio Fibre', and is currently testing the network along with trial offers in major cities.