Reliance Industries (RIL) has now become the most valuable company in the country with a market value of Rs 4.57 Trillion. RIL gained this position by surpassing Tata group’s Tata Consultancy Services (TCS) for the first time in more than four years.
According to the registrar, RIL with the m-cap of Rs 457,641 crore was ahead of TCS, which had a m-cap of Rs 457,386 crore as the BSE data shows. RIL was trading 1.2% higher at Rs 1,407.50, while TCS was flat at Rs 2,321.40
However, RIL could not retain the most-valued tag for long as its shares failed to hold on to morning gains and closed 1.5% lower at Rs 1,370.5 on BSE, giving the company a market capitalisation (m-cap) of Rs 4,45,578.92 crore.
Reliance Industries shares have been range-bound and had underperformed the broader indices for a long period of time as investors were concerned about the profitability of Jio in which Reliance Industries has already invested $25 billion.
Bringing an end to its 8 years of underperformance, RIL rallied 30 percent so far in the year 2017 and has been hitting a multi-year high on a regular basis, compared to a little over 2 percent fall in Tata Consultancy Services (TCS) in the same period.
According to Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, “RIL has broken out of multi-year consolidation in the last quarter out of an 8-year-old triangular formation on long term charts. Usually, such a breakout after prolonged consolidation shall lead to bigger rallies. In the case of RIL, logical targets in the present robust bull market shall be to make new lifetime highs with a re-test of 2008 high present around Rs 1,649 levels whereas pattern breakout target is placed around Rs 1,873 levels. Even after this kind of bigger rally which the counter witnessed recently it still qualifies as a buy because of clearly visible upside potentiality.” Read more Business News.