Reliance outperforms Nifty with $40 bn gain in best run since 2020

By Ashutosh Joshi

 

Reliance Industries Ltd.’s shares are outperforming the country’s benchmark stocks gauge by their widest margin in five years, driven by optimism over the conglomerate’s diversified businesses. 

 

Shares of the country’s most valued firm have surged 22 per cent this year, compared with a 6 per cent rise in the NSE Nifty 50 Index. The firm controlled by Asia’s richest man Mukesh Ambani has added $40 billion to its market capitalization in 2025, contributing nearly a third to the value addition in the benchmark gauge. 

 

The rally marks a rebound for Reliance after its shares trailed the broader index for two straight years. Analysts see room for further advance, helped by higher refining margins, and improved performance of its telecom and retail units. 

 

In its earnings due later Friday, the company is expected to report a jump of almost 33 per cent in net income for the April-June quarter — the biggest rise in three years. 

 

The company’s core oil-to-chemicals business will benefit from elevated refining margins, while its telecom business Jio is expected to report improvement in average revenue per user as well as expansion in subscribers, said Harshraj Aggarwal, an analyst with Yes Securities India Ltd.  

 

Out of 37 analysts tracking Reliance, only two have a sell call while one recommends a hold, according to data compiled by Bloomberg. The consensus price target for the stock is 1,577 rupees, representing a 7 per cent upside from Thursday’s close. 

 

“While some near-term consolidation is possible, the overall technical setup remains favorable for continued upside,” said Ajit Mishra, an analyst at Religare Broking Ltd. “A sustained move above 1,500–1,520 rupees could trigger the next leg of the rally, potentially pushing the stock toward the ₹1,600–1,620 range.”