Shares of Reliance Industries climbed 6.80 per cent on Monday, recording its best trading day in three years.
During the day, it jumped 7.16 per cent to reach a record high of Rs 2,900 per share, to close at 2,890.10 at the end of the trading day. The stock gained over 11 per cent in January.
The company's market capitalisation (mcap) soared to Rs 19,56,771.59 crore during the afternoon trade.
According to a Moneycontrol report, the rally in Reliance shares came after a Bloomberg report said Walt Disney’s India unit is facing major erosion in valuation in the wake of its proposed merger with the media business of Mukesh Ambani. If the deal finalises, Reliance will own 51 per cent in the entity. The assets of Disney’s India is now valued at $4.5 billion after the negotiations between the companies; this was $10 billion earlier, according to Bloomberg.
The energy-to-telecom conglomerate had reported an 11 per cent year-on-year (YoY) rise in net profit at Rs 19,641 crore for the third quarter. Its gross revenue increased 3.2 per cent YoY to Rs 2,48,160.
In 2022, at the company's annual general meeting, Ambani had told shareholders that the market value of Reliance would double by the end of 2027. According to analysts, 2024 is expected to be a good year for the shares of Reliance. While Jefferies has a target price of Rs 3,140, Nomura analysts expect it to touch Rs 3,165.
The sharp rally in the heavyweight stock also fuelled a rally in the equity market. The 30-share BSE Sensex jumped 1,203.90 points to 71,904.57, and the Nifty climbed 375.40 points to 21,715.60.