The upcoming annual general meeting for India’s largest company by market capitalisation, Reliance Industries, will drive cues for domestic markets for the week. The street is expecting a variety of announcements, including updates on IPO timelines for their telecommunications and retail businesses, insights into the progress of the 5G rollout, and revelations about investments in clean energy initiatives
The AGM is expected to guide the market trajectory, added Santosh Meena, Head of Research, Swastika Investmart, as anticipations touch highs. The 46th AGM (post-IPO) comes only a few days after the listing and subsequent muted performance of Jio Financial Services, said Prashanth Tapse, Senior VP (Research), Mehta Equities.
“All eyes would be on RIL AGM and its announcement focusing on Jio Financial future outlook post demerger. RIL has a lot of plans on cards for value unlocking which started from Jio Financials but first initial reactions post listing was not as street expectations. I believe Mukesh Ambani would be focusing more on the Jio Financial plan of action in coming days, which would give a road clear for further value unlocking of retail and Jio telecom ventures,” said Prashanth Tapse.
IPO outlook
The market is eagerly awaiting further value unlocking with the Reliance Retail IPO and Reliance Jio IPO. “If not any concrete announcement then a hint on possible launch of these two much awaited IPOs are also expected from RIL AGM 2023. Apart from this, some concrete information about Jio Financial Services after JFSL share listing is also on the radar of markets,” said Saurabh Jain, Vice President — Research, SMC Global Securities.
Too big for success?
The groundwork for the Reliance Retail Venture IPO has already begun, said Omkar Kamtekar, Research Analyst, Bonanza Portfolio. Reliance Industries announced that Qatar Investment Authority bought 1% stake for Rs 8,278 crore, which ascribed a valuation of Rs 8.25 lakh crore for RRVL. “Additionally, it is expected more such deals could be make in the coming quarters which would be crucial because at the current valuation of $100 billion or Rs 8.25 lakh crore, RRVL’s IPO size will be too big to be successful as there isn’t adequate liquidity to absorb such an issue. Hence, how will RIL navigate the value unlocking process of RRVL will be key to look out.”
RIL: Technical Outlook
After the breakout of the long trend line and triangle pattern formation on the longer timeframe, Reliance Industries has seen profit booking from the higher levels, said Pravesh Gour, Senior Technical Analyst, Swastika Investmart. While the index heavyweight retested its previous breakout levels at around Rs 2,420, the structure of the counter is still lucrative for long-term investors as it is trading above its important moving averages (100 and 200 DMA). “On the upside, Rs 2,550 is an immediate hurdle; above this, we can expect a move towards Rs. 2630. On the downside, Rs 2,420 is a strong demand zone during any correction,” he added.