Mixed Market Sentiments for RIL and Reliance Power on NSE

Author: Riya Dutt
It is not unusual to witness selling pressure for a particular stock throughout the week, keeping sentiments bearish. Such a situation seldom negatively affects investor sentiments. Because the investor knows about the volatility of the Indian market and hence the hope of bullish sentiments to follow soon! Come some good news at the global front including strong domestic cues, measures by the RBI, etc. buying goes up. When quarterly results of companies, irrespective of whether good profits or losses are registered, respective shares exhibit mixed results. Consider Reliance Industries on NSE. Before RIL declared its fourth quarterly results ending March 31, 2013, buying pressure was witnessed, leading to the rise of its share price by over 2 percent. Soon after its quarterly results were declared, it slipped by over 3 percent.
Reliance Industries registered a 32 percent YoY increase in its profit, but this second largest company in India by revenue after Indian Oil Corporation, missed revenue growth estimates for the January-March quarter. Its revenue fell to Rs 86618 crore or 1.4 percent triggered by falling oil and gas revenue by nearly 39 percent. Investors may not witness a near-term trigger for Reliance Industries, but can consider long term investment a safe bet. According to the last 52 weeks, RIL stock on NSE was priced highest at Rs. 955 and lowest at Rs. 673.40. Going by analysts' recommendations and projections, the stock falls in the ‘buy' category with target price of Rs 1070 during the next 11 months.
As one of the largest publicly traded companies by market capitalization in India, RIL continues to attract investor confidence. In terms of revenue and profit, it is also the country's second largest private sector company. According to Forbes' survey for the year 2012, RIL ranks 99th on Fortune Global 500 list of the world's biggest corporations.Developing, constructing, and operating power projects in the domestic and international markets, is the forte of Reliance Power.
It is currently handling 13 medium and large-sized power projects along with its subsidiaries; the combined planned installed capacity is estimated at 33,480 MW. Reliance Power on NSE is fluctuating between double digits and triple digits during the last 52 weeks. The difference in price noticed is unlike any other blue chip company. Reliance Power NSE was perched highest at Rs. 111.35 and lowest at Rs. 58.55. Q4 results of Reliance Power did not meet market estimates. Its consolidated net profit was almost flat at Rs 266 crore with income down at Rs 122 crore quarter-on-quarter and Rs 17.1 crore from Rs 120.2 crore, year-on-year.
Article Source: http://www.articlesbase.com/day-trading-articles/mixed-market-sentiments-for-ril-and-reliance-power-on-nse-6614857.html
About the Author
Riya Dutt is an Economics analyst and writes reviews on the Reliance Industries. The above article is about Reliance Power NSE.