Shares of Reliance Industries (RIL) surged nearly 10 percent on Wednesday, becoming the top gainer in both Sensex as well as Nifty. The indices were also trading higher, following a rally in the global indices after Fed stimulus and various relief measures announced by the FM Nirmala Sitharaman yesterday.

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The stock rose as much as 9.7 percent to Rs 1,035 per share on BSE. At 9:35 am, the stock was trading 7.6 percent higher at Rs 1,015 as compared to a 1 percent rise in BSE Sensex at 26,948.

Despite a 29 percent fall in the last 1 month due to coronavirus selloff, brokerages have remained positive on the stock.

Kotak Securities has a 'buy' call on the stocks. As per the brokerage, near-term headwinds discounted in perpetuity. We do see near-term headwinds to RIL’s earnings from lower downstream margins amid a worsening macro-environment; however, it may be partly mitigated by a plausible hike in telecom tariffs at an opportune time, it said.

HSBC also said that steady earnings momentum with emerging signs of a strong outlook for telecom and retail business and an inexpensive valuation drive their 'Buy' rating.

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First Published:Mar 25, 2020 9:51 AM IST