Shares of India’s largest company by market cap, Reliance Industries (RIL), rallied 3.32 per cent to Rs 1,249.80 per share on March 7, 2025, emerging as the top gainer in both the Nifty and the Sensex.
RIL has gained for the third day in a row, rising 7.5 per cent over the said period.
RIL Saves Sensex From Dipping Below 74,000-mark
The rally in RIL single-handedly rescued the benchmark indices from posting negative returns.
The BSE Sensex closed flat at 74,332.58, slightly down by 7.51 points, or 0.01 per cent, while the NSE Nifty 50 closed slightly higher at 22,552.50, up by 7.8 points or 0.03 per cent.
RIL contributed 224.77 points to the Sensex in Friday’s session, followed by Kotak Mahindra Bank (16.23 points) and Tata Motors (15.73 points). On the other hand, dragging the index were Infosys (-85.45), Zomato (-50.30), and NTPC (-34.39).
In the broader market, the NSE Smallcap 100 gained 0.67 per cent, while the NSE Midcap 100 lost 0.32 per cent. Sectorally, oil and gas, metal, and auto indices ended the day in green, while realty, IT, and bank closed in the red.
Vinod Nair, head of research, Geojit Financial Services, says: “The global market is experiencing heightened uncertainty due to US tariff impositions and counter threats from its peers. This ambiguity has led to increased risk aversion and diminished appeal of equities. EMs have been particularly affected, experiencing significant outflows. Lately, S&P 500 index is showing signs of a deeper correction, reflecting concerns about the potential impact of tariffs on the US economy. In contrast, Indian markets have demonstrated resilience off late, despite the looming trade war. A recovery in corporate earnings could significantly improve the domestic sentiments.”
Why Reliance Industries Share Price Went Up Today
Reliance Industries (RIL) shares surged after Macquarie upgraded its rating to ‘Outperform’ from ‘Neutral’, citing improved earnings momentum and the potential listing of the Jio telecom unit.
Analysts at Macquarie believe earnings estimates for FY26 and FY27 are now ‘fair’ after a 12-17 per cent cut over the past year.
Earlier this week, Jefferies had reiterated its ‘buy’ call, citing a potential recovery in the company’s retail business and a likely tariff hike in its telecom unit. The brokerage firm expects RIL’s retail segment growth to recover to 15 per cent in FY26, supported by same-store sales expansion and new store additions.
Kotak Institutional Equities had also upgraded the stock to ‘buy’ from ‘add’, citing that the recent decline in RIL’s share price has made the stock more attractively valued. According to analysts at Kotak, subdued retail demand was the key reason for the weak performance of RIL stock. However, they expect this to improve as the store-rationalisation cycle concludes. The analysts also pointed out that any developments regarding the potential initial public offering (IPO) of Reliance Jio or a tariff increase in the telecom sector could serve as positive catalysts for the stock.
RIL Shares Trading With Massive Discount
The Mukesh Ambani-owned company’s shares are trading with a discount of 22.3 per cent from its all-time high of Rs 1,608.80 hit on July 7, 2024.
This decline over the past eight months had resulted in a loss of more than Rs 6 lakh crore in market cap for the oil-to-textile conglomerate. By today’s end, RIL’s market cap stood at Rs 16.86 lakh crore. At its record high, the company boasted a market cap of nearly Rs 22 lakh crore.
