According to stock market experts, Reliance GDR prices falling to the tune of 6 per cent in single trade session is not a good sign for Reliance shares listed on Dalal Street. This may trigger heavy sell off RIL share price when the Indian stock market reopens on Monday after the weekend close. They went on to add that Reliance Industries has declared Q1 results without any surprise. RIL declared 10 per cent dip in net profit that may also put pressure on the Sensex heavy weight. After Jio Financial Services Ltd or JFSL demerger, Reliance share price was already under pressure as the stock ascended to an overbought condition because retail investors bought RIL shares to get Jio Financial Services shares as reward. After Reliance GDR price crash at London Stock Exchange, stock market experts expected Infosys share like sell off in Reliance share price on Monday once the Indian market re-opens after the weekend close.

Cue from Reliance GDR price dip

Expecting Infosys shares’ like sell off in Reliance share price, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Reliance Q1 results were announced after the closure of Indian stock market but Reliance GDR was trading at London Stock Exchange when the RIL Q1 results 2023 was announced. Reliance GDR share price crashed to the tune of 6 per cent at London Stock Exchange after the announcement of Q1 results of the Sensex heavy weight as we witnessed with the Infosys ADR price at NYSE. As Reliance share price is already in overbought condition due to retail buying ahead of Jio Financial Services demerger record date, profit-booking in Reliance share price is widely expected.”

Expecting weak opening for Reliance shares on Monday, Anuj Gupta, Vice President — Research at IIFL Securities said, “Reliance has announced decline in net profit to the tune of 10 per cent, which is below market estimates. So, this Reliance Q1 results can be categorised as a weak quarterly results and Reliance GDR price crash after Q1 results should be seen from this specs only. So, when Indian stock market reopens on Monday, we may witness Infosys like sell off in Reliance shares during early morning deals on Dalal Street.”

Advice for Reliance shareholders

On advice to Reliance shareholders in the wake of sell off trigger on Monday, Anuj Gupta of IIFL Securities advised them to maintain strict stop loss at ₹2300 apiece levels as immediate support of ₹2400 levels looks jeopardised after the lower than market estimated Q1 results by RIL.

Reliance share price ended on Friday at ₹2,555 apiece levels, logging around 2.50 loss during Friday deals ahead of Q1 results announcement.

Reliance Industries Ltd (RIL) announced its April-June quarter results for the current fiscal on Friday, a day after the demerger of its financial services arm. The oil-to retail empire’s net profit declined 10.8 per cent to ₹16,011 crore, while revenue from operations dell 4,69 per cent to ₹2,31,132 crore.

The oil-to-chemicals (O2C) arm’s revenue declined 17.7 per cent to ₹1,33,031 crore on sharp reduction in global crude oil prices. The weakness in O2C biz offset the company’s overall growth reported by resilience in retail and telecom arms – Reliance Retail and Reliance Jio during the quarter-under-review.

After the announcement of weak Infosys Q1 results 2023, Infosys ADR price on NYSE dipped over 8 per cent that triggered heavy sell off in Indian IT stocks along with Infosys shares. Infosys shares ended near 8 per cent lower on Friday forcing Indian stock market to snap its six days winning streak.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

Updated: 22 Jul 2023, 10:27 AM IST