Reliance Declines Almost 4% on Monday; Here is What Brokerages Suggest – Investing.com India

Reliance Declines Almost 4% on Monday; Here is What Brokerages Suggest – Investing.com India

By Malvika Gurung

Investing.com -- Shares of the Mukesh Ambani-led Reliance Industries (NS:) Limited declined 3.47% and were last seen trading at Rs 2,387.75 apiece on Monday’s session after the conglomerate announced that it would re-evaluate its deal with the global oil major Saudi Aramco (SE:) on Friday.

The deal between the two corporations to have taken the back seat will likely result in a minor setback for RIL, state different analysts. Furthermore, with some correction in the stock due to this development, would turn out to be a good opportunity for investors to buy RIL shares for a longer-term.

In its annual general meeting in 2019, RIL and Saudi Aramco signed a non-binding letter of intent for selling 20% of the former’s O2C business at USD 15 billion to the global oil giant, to achieve a large debt reduction. However, since 2019, Reliance has managed to achieve the same through large stake sales in Jio, retail business and fundraising through the rights issue.

The conglomerate is a debt-free company now and is not in dire need to sell any stake in a rush, states the director of IIFL Securities, Sanjiv Bhasin. 

Brokerage house Morgan