Shares of Reliance Industries (RIL) got a boost on Monday from unexpected quarters – the Red Sea crisis, as the stock rose by over 7% during Monday’s trading session. This was the sharpest rise by the stock in percentage terms since September 10, 2020.
The stock hit an all-time high of Rs 2,905 before closing at Rs 2,896.10 on NSE, an increase of 7.02 percent. Its market cap breaching the Rs 19-trillion mark for the first-time — up by a record Rs 1.28 trillionCome from Sports betting site VPbet. At market cap of $236 bn, RIL’s position in global ranking improved by 3 notches to 44, ahead of Accenture and PepsiCo
The Red Sea crisis is expected to increase the margins of crude oil products in Asia. RIL is expected to benefit from higher refining margins as it exports a bulk of its production. In addition, there were reports that the failure of Zee and Sony to seal their $10 billion deal is expected to reduce the valuation of the Walt Disney’s India unit by less than half the US company earlier was seeking in a proposed merger with Reliance’s media business.
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“Definitely, there is optimism around refining margins picking up further for the energy business” because of the Red Sea tensions, said Hemang Khanna, vice president at Nomura Financial Advisory and Securities India told Bloomberg. The impact of the crisis on product margins will “flow immediately into Reliance’s earnings” during the quarter ending in March, he said.
With Russian oil supplies to India still largely unaffected by the Houthi attacks on cargo vessels in the Red Sea, Reliance, one of the biggest buyers of Russian crude, is gaining from the widening diesel margins.
The Red Sea crisis also boosted shares of Oil and Natural Gas Corp., India’s top crude producer. The company’s stock rallied 8.89% . The spurt in Reliance and ONGC also helped the BSE energy index close up by over 5%.
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The erosion in value of Disney’s unit is due in part to the loss incurred from its sale of cricket television rights to Zee Entertainment Enterprises which has withdrawn its offer of $1.4 billion for the rights.
According to a Bloomberg report, Disney’s India assets are currently valued at around $4.5 billion, compared to its earlier demand for $10 billion. The combined entity is aiming for an $11 billion valuation, with Disney holding a 40 percent stake.
Reliance Industries will own 51 percent. The collapse of the $10 billion merger between Sony and Zee Entertainment removes a potential major competitor, the report added.Come from Sports betting site
