Investors Dump RIL Shares As Aramco Deal Yet To Fructify, JioPhone Next Launch Months Away

RIL shares were down 0.7% before the AGM speech started and was down throughout the AGM speech of Mukesh Ambani and fell further 2.7% towards the end of the speech. 

RIL Chairman Mukesh Ambani. (File Photo/ Getty)

Mumbai: Investors dump Reliance Industries Limited (RIL) shares on Thursday as its chairman Mukesh Ambani failed to enthuse the shareholders at the annual general meeting (AGM) of India's most valued firm. 

RIL shares were down 0.7% before the AGM speech started and was down throughout the AGM speech of Mukesh Ambani and fell further 2.7% towards the end of the speech. 

The shares fell despite the various announcements made by the billionaire chairman from induction of Yasir Al-Rumayyan, Chairman of Saudi Aramco and the Governor of the Public Investment Fund, to join the Board of Reliance Industries Limited as an Independent Director, to investments of over Rs 75,000 crore in the new energy business and the launch of JioPhone Next in association with Google. 

RIL shares closed down 2.35% at Rs 2135.35 in a firm Mumbai market on Thursday, valuing the company at Rs 13,65,103.98 crore. 

"The investors were looking for announcement on the sale of oil-to-chemicals (O2C) business of RIL, and that deal is further postponed, leading to disappointment among the investors. RIL is a long-term play, and the company's fundamentals are solid," Paras Bothra, chief investment officer, Ashika India Alpha Scheme, told ABP News. 

In the last 10-year, RIL shares closed down six times after the AGM and closed up four times post-AGM. RIL shares surged most almost 10% after the 2019 AGM and closed down 3.71% after the 2020 AGM. 

"Over the past 10 years, in the week and month post the AGMs, the stock has outperformed Nifty 6/10 and 7/10 times, potentially implying that the speech managed to give more confidence," HSBC said in a note.

In one year, the stock has increased by 27% on the BSE, compared to a 51% increase in the benchmark Sensex. So far in the calendar year 2021, RIL's stock is up almost 13% versus a 10% rise in the Sensex.