Oil-to-telecom conglomerate Reliance Industries, on Thursday, became the first Indian company to hit Rs 10 lakh crore market cap, making it the most valued Indian company in terms of market capitalisation. RIL shares rose as much as 0.9 percent intraday today to touch a new 52-week high of Rs 1,584 per share on the BSE, pushing the company's market cap to over Rs 10 lakh crore.

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RIL's stock price settled 0.65 percent higher at Rs 1,580 with the market cap of Rs 10.01 lakh crore. The stock has risen 39 percent in the last 1 year and 40 percent just in 2019.

Last week, the Mukesh Ambani-led oil-to-telecom-retail conglomerate became the first Indian firm to cross a market capitalisation of Rs 9.5 lakh crore.

The stock has been on a high since RIL and Saudi Aramco signed a nonbinding letter of intent under which Saudi Aramco will buy a 20 percent stake in RIL's oil-to-chemical business at an enterprise value of $75 billion. The sentiment was also lifted after Reliance Jio said that it will increase tariffs in the next few weeks, in a bid to strengthen the financially stressed industry.

IT giant TCS comes at a distant second with a market value of Rs 7.88 lakh crore. Interestingly, HDFC Bank has joined the top three recently, with its mcap crossing the landmark figure of Rs 6.97 lakh crore

At Rs 10 lakh crore, RIL's market cap was higher than that of 6 PSUs together, which are State Bank of India (Rs 3.09 lakh crore), Oil and Natural Gas Corp. (Rs 1.7 lakh crore), Indian Oil Corporation (Rs 1.28 lakh crore), NTPC (Rs 1.14 lakh crore), Power Grid (Rs 1 lakh crore) and Bharat Petroleum (Rs 1.1 lakh crore).

In Q2, the company posted an 18.3 percent increase in its net profit to a record Rs 11,262 crore. It also announced that it will set up a new subsidiary to bring all its digital initiatives under a single entity with an equity infusion of over Rs 1 lakh crore.

Global investment firm Bank of America Merill Lynch (BoFAML) thinks RIL could become the first Indian company to reach $200 market cap.

HSBC also recently raised its target to Rs 1,700 per share from Rs 1,565 earlier. It added that operating trends for both telecom and organised retail remain strong and that the telecom and retail segment will drive the near-term upside potential.

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First Published:Nov 28, 2019 10:44 AM IST