Reliance Industries AGM 2024: RIL share price rally fuels Sensex, Nifty 50 to hit fresh record highs

Reliance Industries AGM 2024: Billionaire Mukesh Ambani-led Reliance Industries Ltd (RIL) conducted its 47th annual general meeting (AGM) on Thursday, August 29, driving the domestic equity benchmarks Sensex and Nifty 50 to fresh record highs during afternoon trade. The oil-to-telecom conglomerate announced many changes as part of its future growth plans and key corporate actions, such as bonus issue of shares slated for the near term.

Shares of Reliance Industries gained over two per cent during Thursday's session to hit an intra day high of ₹3,074.80 against a 52-week high of ₹3,217.90 apiece on the BSE. The momentum drove the domestic frontline indices to hit lifetime highs during the mid-hours of trading.

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Sensex, Nifty 50 hit lifetime highs on RIL GM 2024

The Nifty 50 hit a fresh record high at 25,174.55, and Sensex touched 82,220.68. The indices opened almost flat with a mixed response from both indices in the opening hour. Nifty opened 17 points down at 25,035.30 points. The BSE Sensex opened with a minor gain of 35 points at 81,822.56.

Extending its winning run to the seventh day in a row, the BSE benchmark climbed 73.80 points or 0.09 per cent to settle at 81,785.56. The Nifty 50 has risen for 11 consecutive sessions, adding about four per cent to post its longest winning streak since October 2007.

The broader, more domestically focussed small- and mid-caps fell about 0.5 per cent each, underperforming the benchmarks. The Indian domestic market is among the top performers globally this year, helped by hefty domestic inflows amid a robust economic and earnings outlook.

Shares of Reliance Industries have risen over 38 per cent from its 52-week low of ₹2,221, hit last in October 2023. The largecap stock has gained almost 24 per cent in the last one year and 19 per cent year-to-date (YTD).

‘’Reliance as a conglomerate has consistently rewarded its shareholders by offering these bonus opportunities as they believe in long-term growth and the value of both the investors and the company in achieving success. Mukesh Ambani explains how it is imperative for shareholders to derive meaningful value to guarantee the perpetual success of the firm,'' said Amit Goel, Co-Founder & Chief Global Strategist at Pace 360.

Also Read: Reliance Industries board to consider issuing 1:1 bonus shares on September 5

Reliance Industries to consider bonus shares

RIL's board will convene on Thursday, September 5, 2024, to consider and recommend to the shareholders the approval of a bonus issue of shares in the ratio of 1:1. After today's rally, the stock is just 4.4 per cent away from its peak of ₹3,217.90, hit on July 8, 2024.

Reliance Industries Chairman Mukesh Ambani said the company will launch artificial intelligence (AI) tools and platforms and boost its green energy manufacturing ecosystem. "When Reliance Industries grows, we reward our shareholders handsomely," said Ambani. 

The conglomerate announced the "Jio AI-Cloud Welcome Offer," which will provide Jio users up to 100 GB of free cloud storage. To support the adoption of artificial intelligence (AI), Reliance's telecom arm, Jio, is developing a comprehensive suite of tools and platforms under the initiative "Jio Brain."

‘’Reliance Industries stock price sharply rose after the company announced plans to issue bonus shares. This won't be the first time Reliance is announcing a 1:1 bonus, starting from 1997 this is the fifth time Reliance has taken this decision for the equity shareholders of the company by capitalization of reserves,'' said Goel.

‘’By offering a 1:1 bonus, not only do a wider base of investors get access to the stock but it also offers more liquidity in the RIL shares. The market has positively received RIL's announcement of a bonus share issue. It is a sign of the company's financial strength and its commitment to returning value to shareholders. The increased liquidity and potential for future value appreciation will likely outweigh any negative impact on the share price,'' he added.

Also Read: Stock market today: Sensex, Nifty 50 hit record highs led by Reliance, Tata Motors, ITC; mid, smallcaps falter

Sensex, Nifty 50 outlook

Commenting on today's market performance, Vinod Nair, Head of Research at Geojit Financial Services, said, "Indian equities began steadily and breached a record high. Volatility disturbed the trend in the afternoon due to Reliance Ltd AGM expectations.''

‘’Still, the broad market carried the rally to a new high by the end of the day with rapid improvement in sentiment. The recent uptick in Indian IT and FMCG stocks indicates a potential soft landing for the US economy and an improvement in domestic rural consumption,'' Nair added.

Later this week, the markets will read the first quarter gross domestic product (GDP) data scheduled on Friday, August 30. In its latest monetary policy meeting, the Reserve Bank of India (RBI) projected GDP growth for 2024-25 at 7.2 per cent, with growth for Q1 expected at 7.1 per cent.

Technical View: "The Nifty moved up to achieve its highest-ever closing following a volatile session. Besides, the index has undergone a brief consolidation breakout. The RSI is in a bullish crossover, indicating strong price momentum. In the short term, the index might move towards 25,300, with support on the lower end placed at 25,000,'' said Rupak De, Senior Technical Analyst, LKP Securities.
 

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