Sensex rallies 646 points backed by RIL's bull run
Mumbai, September 10, 2020
The Indian stock market witnessed a rally on Thursday with the BSE Sensex gaining over 600 points.
The rally was fuelled by a 7 per cent rise in Reliance Industries' shares. RIL stocks touched a record high of Rs 2,343.9 and its market capitalisation is currently over Rs 14.67 lakh crore.
The surge in share prices comes on the back of the announcement of a Rs 7,500 crore investment by Silver Lake into Reliance Retail Ventures Ltd, an RIL subsidiary.
On Wednesday, RIL had announced that the investment values RRVL at a pre-money equity value of Rs 4.21 lakh crore. Silver Lake's investment will translate into a 1.75 per cent equity stake in RRVL on a fully diluted basis.
RIL shares closed at Rs 2,314.65, higher by Rs 153.40 or 7.10 per cent from its previous close.
Heavy buying was witnessed on Thursday in the energy and oil and gas stocks. The BSE Energy index surged 6.26 per cent the Oil and gas index was up 3.59 per cent.
Rahul Sharma, Research Head at Equity99 said: "Strong recovery in the global markets and sharp gains in Reliance Industries snapped two-days losing streak in the markets.
He said that the Nifty50 is expected to move to 11,800-11,850 in the next couple of days.
On Thursday, the Nifty closed at 11,449.25, higher by 171.25 points or 1.52 per cent from the previous close of 11,278 points.
The BSE Sensex ended at 38,840.32, higher by 646.40 points or 1.69 per cent from the previous close of 38,193.92.
It had opened at 38,516.88 and touched an intra-day high of 38,878.25 and a low of 38,367.07 points.