Reliance Industries Shares Surge 12% Amid Strong Q2 Earnings
Reliance Industries experienced a remarkable 12% increase in share price, attributed to strong quarterly earnings and significant market activity.
Reliance shares saw their largest single-day gain since April 2020.
The company's Q2 earnings report showed a 41% increase in net profit year-on-year.
Analysts predict further potential gains due to technical indicators and market dynamics.
Shares of Reliance Industries soared by 12% on Monday, marking the most significant single-day increase since April 2020. This surge comes as a timely boost for investors, particularly ahead of the Diwali festival, despite the stock being down over 17% in 2026. The closing price reached Rs 1,300 per share, contributing nearly Rs 2 lakh crore to the company's market capitalization in just one trading session.
The rally was largely driven by the company's impressive Q2 earnings, which reported a consolidated net profit of Rs 25,548 crore, a 41% rise compared to the same quarter last year. Revenue from operations also increased by 29% year-on-year, reaching Rs 3.32 lakh crore. This positive financial performance has sparked renewed interest among investors and analysts, who are optimistic about the stock's recovery.
Analysts have identified four key factors that may contribute to further gains for Reliance shares. Firstly, a significant volume breakout accompanied the recent rally, indicating a potential trend reversal. Historical data suggests that similar instances have led to substantial positive returns in the past. Secondly, there was a notable increase in delivery-based buying, with approximately Rs 6,413 crore in purchases, which triggered short covering in the stock. This suggests a shift in investor sentiment towards long-term holding.
Moreover, international brokerages have reaffirmed their 'Buy' ratings following the earnings report, with Jefferies setting a target price of Rs 1,710, indicating a potential upside of 47%. Nomura has also revised its target to Rs 1,560, reflecting a robust upside potential of 34%. Lastly, the recent listing of Jio Platforms has unlocked additional value for Reliance, enhancing the overall investment narrative.
As of Tuesday, Reliance shares were trading slightly lower at around Rs 1,295, with some profit booking observed following the historic rally. Despite this, the stock has gained approximately 9% over the past week and more than 11% in the last month. Analysts remain optimistic about the long-term outlook, noting that the stock has delivered positive returns over three and five years, with a market capitalization nearing Rs 17.5 lakh crore.
