Reliance Industries shares rallied more than 4 percent intraday on March 20 after Morgan Stanley retained its bullish bias on the stock, citing likely benefit from lower oil prices and Supreme Court’s decision on AGR dues.
The stock lost 43 percent from its 52-week high seen in December, but the global brokerage sees 78 percent upside in the next one year at Rs 1,632 given the attractive valuations.
“The lower oil prices have led petrochemical margins to expand and refining margin has been stable despite demand challenges,” said the brokerage.
International benchmark Brent crude futures itself traded below $30 a barrel now amid low demand across the globe due to wide-spreading novel coronavirus that has taken 9,000 lives with more than 2.10 lakh infected cases worldwide.
While hearing the Department of Telecommunications (DoT) plea on the adjusted gross revenue (AGR) case, a bench of the Supreme Court of India on March 18 said no further objections to its orders would be allowed against payable dues.
“All dues as per our judgement will have to be paid, including interest and penalty. The Solicitor General had filed a plea seeking reasonable time, we will consider this plea on the next date,” the order stated.
The stock was quoting at Rs 950, up Rs 32.90, or 3.59 percent on the BSE at 1027 hours IST.
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