Reliance Industries Surges 7% – Biggest Gain Since September 2020 – Amid Optimism Over Increased Margins on Oil Products in Asia Due to Ongoing Red Sea Crisis.
Reliance Industries, Led by Mukesh Ambani, Experiences Best Monday in Over Two Years as Stock Breaks Out of Trading Range.
Reliance Industries Shares Surge 7%, Marking the Highest Gain Since September 2020, Fueled by Optimism Amid the Red Sea Crisis, Expected to Boost Margins on Asian Oil Products.
The rally boosts Mukesh Ambani’s net worth to $111.1 billion, securing the 11th position on the Forbes Real-Time Billionaire list, surpassing Mexico’s richest person, Carlos Slim.
The rally in Reliance Industries was further propelled by news that Disney’s India unit is now valued at less than half the earlier pursued valuation in a proposed merger with Reliance’s media business.
Reliance Industries Surpasses Petrochina and Shell, Emerges as the Fourth Most Valuable Energy Company Globally, Trailing Only Behind Saudi Aramco, Exxon Mobil, and Chevron Corp.
“There is optimism around refining margins picking up further for the energy business due to the Red Sea tensions,” stated Hemang Khanna, Vice President at Nomura Financial Advisory and Securities India, as reported by Bloomberg.
The Red Sea crisis and the disruption in oil supplies have had a notable impact on Reliance Industries, particularly in terms of product margins. The ongoing tensions are expected to have an immediate effect on Reliance’s earnings for the quarter ending in March, according to Hemang Khanna, Vice President at Nomura Financial Advisory and Securities India.
Despite the challenges, Reliance is benefiting from the widening diesel margins. Russian oil supplies to India, a significant part of Reliance’s crude sources, have remained relatively unaffected by the recent Houthi attacks on cargo vessels in the Red Sea. As a result, Reliance is experiencing improved refinery margins for producing gasoil over Dubai crude in Asia. These margins have risen to $25.53 per barrel from $20 per barrel a month ago, based on third-party data compiled by Bloomberg.
The positive developments in refining margins and the overall energy sector, coupled with the stock’s breakout from the consolidation zone, have contributed to Reliance Industries’ recent stock performance. Opening at ₹2,713, reaching a high of ₹2,905, and closing at ₹2,896, the stock has seen a 12% gain this month, breaking out of the price range it had consolidated within since October 2021 (₹2,000-2,650 levels).
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