Sensex Surges 900 Points From Day’S Low, Nifty50 Touches 17,500 As

Market Watch: Dipan Mehta, Director, Elixir Equities

Reliance Industries

I think that O2C hive-off was disappointing because it would have been a trigger for the stock to move up as and when Saudi Aramco would have taken a stake in the company. What Reliance management did with retail business and the digital business something similar were to happen in the OTC business, then that what would certainly improve the sentiment in the stock.
While we are all rejoicing that Bharti Airtel has raised its tariff plans, the automatic beneficiary also will be Jio, and sooner or later, you may expect Jio also to start raising his tariff plans and that certainly benefit the digital businesses. The retail business, of course, is doing exceptionally well. So I think corrections like this are great opportunities if you are not already invested in Reliance, which you should be considering its weightage in the Sensex and Nifty and corrections like this, maybe 3-4 percentage point, five percentage points lower, give you a good entry point in Reliance. We have seen that whenever you bought into Reliance at corrections in a few months’ time it suddenly starts to outperform and deliver exceptional results. So I don’t think that Reliance is in a position where it will now be a laggard, it will continue to outperform on a medium to long term basis.