After underperformance in the past three months (up 3 per cent) and six months (up 4 per cent), as compared to a 6 per cent and 14 per cent rise, respectively, in the S&P BSE during the same period, RIL has outperforming the market in the past one week (up 5.5 per cent) and one month (up 6.5 per cent).
As per media reports, Reliance Retail is planning to enter the artefacts business. The first of its artisan-centric stores called 'Swadesh' will come up in Delhi's Connaught Place area.
Entry into the gifting segment presents a huge opportunity for Reliance as the segment is largely unorganised with only a few organised players having a pan India presence. The key monitorable would be the product category and price points that the company targets. The ability to source articles at prices which can keep the final consumer prices at levels which are comparable to existing competition would be critical for growth of the business, ICICI Securities said in a note.
Meanwhile, analysts at BNP Paribas, have ‘Buy’ rating on RIL with a target price of Rs 2,765 per share. According to brokerage firm, the telecom industry’s subscriber mix continues to improve. However, there is a large upgrade opportunity ahead, as one-third of industry subscribers are still using feature phones (including JioPhone).
As high-end consumers move to 5G, their data usage is set to increase, and we believe this presents an opportunity for upgrading to larger packs. The industry’s subscriber base has remained stable despite price hikes and we feel this will give operators the confidence to take further tariff hikes. Overall, the brokerage firm expects strong revenue growth and operating leverage benefits to continue for Airtel and Jio, the brokerage firm said.
At 12:30 IST, the barometer index, the S&P BSE was up 353.5 points or 0.57% to 62,647.14. The Nifty 50 index added 87.10 points or 0.47% to 18,599.85. The two benchmarks hit fresh all-time highs in intraday today, at 18,604.35 for the Nifty 50 index and 62,661.44 for the Sen. In the broader market, the S&P BSE Mid-Cap index rose 0.73% while the S&P BSE Small-Cap index added 0.69%. The market breadth was strong. On the BSE, 2157 shares rose, and 1324 shares fell. A total of 178 shares were unchanged.
Derivatives:
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 1.81% to 13.5750. The Nifty 29 December 2022 futures were trading at 18,725.60, at a premium of 125.75 points as compared with the spot at 18,599.85.
The Nifty option chain for the 29 December 2022 expiry showed maximum Call OI of 35.6 lakh contracts at the 19,000 strike price.
The Maximum Put OI of 37.4 lakh contracts was seen at an 18,000 strike price.
Buzzing Index:
The Nifty IT index rose 0.79% to 30,573.80, extending gains for the third session. The index advanced 3.97% in three trading sessions.
Persistent Systems (up 2.03%), Larsen & Toubro Infotech (up 1.44%), Wipro (up 1.34%), Mphasis (up 1.03%), Tech Mahindra (up 0.98%), Coforge (up 0.79%), Infosys (up 0.76%), Tata Consultancy Services (up 0.69%), L&T Technology Services (up 0.28%) and HCL Technologies (up 0.21%) advanced.
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