Shares of Reliance Industries rallied more than 4 per cent on Friday, after Morgan Stanley retained its bullish bias on the stock, citing gains from the lowered oil prices and Supreme Court’s verdict on AGR dues.
In December last year, the stock lost 43 per cent from its 52-week, but the brokerage sees an ‘overweight’ on the stock with a target at Rs 1,632 per share.
“The lower oil prices have led petrochemical margins to expand and refining margin has been stable despite demand challenges,” media reports quoted the brokerage as saying.
International benchmark Brent crude futures itself traded below $30 per barrel now due to the fear of coronavirus pandemic. As per reports, the deadly virus has already claimed over 10,000 lives with more than 2,45,000 lakh infected cases across the globe.
The brokerage firm further said that Supreme Court’s verdict on AGR dues case could benefit Ambani-led firm, adding that the Saudi Aramco’s disclosure hinted towards progress on divestment.
“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,” SC stated.
After hitting day’s high of Rs 1,024.3, the shares of RIL were trading at Rs 1,008.90 up by 10.01 per cent at 02.30 pm.
(With input from agencies)