Shares of Reliance Industries (RIL) fell 3%
Shares of Reliance Industries 0.02 % (RIL) fell 3% to Rs 1,250.75 on Monday as investor sentiment soured following an order by the Securities and Exchange Board of India on Friday barring the company from accessing the equity derivatives market for a year.
Analysts Viewpoint
Analysts said the impact of the order on the stock will be shortlived as it will not affect its business operations.
The Penalty To Reliance Industries
Also, the penalty amount is low for a company which reported a consolidated net profit of over Rs 7,500 crore for the quarter ended December. The regulator directed the company to disgorge Rs 447.3 crore along with annual interest of 12% from November 29, 2007 onwards till the date of payment.
Reliance and Jio
Reliance said it will challenge the order in the Securities Appellate Tribunal. Between February 21 -when the company announced that it will start charging customers for Reliance Jio’s telecom services -and Friday, the stock has gained 18%. Reliance has spent about Rs 1.5 lakh crore in capex on Jio.
Trading Tips regarding RIL shares
One should buy it on dips near Rs 1,180 for a target of Rs 1,320-1,325 in the next three to four weeks with a stop loss of `1, 150, “said Nagaraj Shetti, technical research analyst of Indian Share Market at HDFC Securities.