Reliance Industries is one of the biggest companies in India. The Mukesh Ambani-led conglomerates have interests ranging from telecom to oil. However, Reliance has had a tough time at bourses recently. After a rough start to the year, the stock is still trying to recover. On a year-to-date basis, the Reliance share price is down over 2%.
The Investment: If you had invested ₹10,000 in Reliance a year ago on July 24, you would have bought approximately 4 shares. With the current market price at ₹2,520, your investment would now be worth approximately ₹10,080. That’s a modest return of nearly 0.8% in a year.
Background: Reliance has been making headlines for several new developments. Reliance Jio, a telecom subsidiary of Reliance, is reportedly in talks with banks including Citigroup, HSBC, and JPMorgan Chase to secure a loan of around $1.6 billion for purchasing equipment from Finland's Nokia. This move is part of the company’s aggressive strategy for the rollout of 5G services.
In another development, Reliance is also said to be pushing against the entry of Elon Musk‘s Starlink in India. After a recent meeting with Prime Minister Narendra Modi, Musk expressed his keenness to launch Starlink in India, especially to benefit remote villages lacking high-speed internet services.
However, Starlink supports license allocation instead of spectrum auction, in line with global trends, arguing that it allows for shared access and avoids geographical restrictions that can increase costs. On the other hand, Reliance advocates for an auction, claiming that it promotes fair competition.
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Price Action: Reliance's share price was down 0.79% to trade at ₹2,515.55 in the late hours of trading on Friday.
Disclaimer: Benzinga India doesn’t give financial advice. The above article is for educational purposes alone.
Editor’s Note: Artificial intelligence was used as a secondary aid in the writing of this story.
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