Home / International/ Reliance shares see biggest intraday rise in decade; rivals hit by disruption worries

Reliance shares see biggest intraday rise in decade; rivals hit by disruption worries


Comments / {{hitsCtrl.values.hits}} Views / Wednesday, 14 August 2019 00:00


BENGALURU (Reuters): Reliance Industries shares saw their biggest intraday rise in a more than a decade on Tuesday, after it set a target to reach zero net debt within 18 months and vowed to reward shareholders with higher dividends and periodic bonus issues.

The group’s billionaire Chairman, Mukesh Ambani, also unveiled plans to launch cut-price home internet services across India next month, threatening to disrupt the telco market with offers of free voice calls for life, television and movie streaming, and even TV sets to go with some subscription plans.

The announcements drove Reliance shares up as much as 12% – its biggest such move since 14 January 2009. The spike has put the company within touching distance of becoming the highest-valued Indian company again. Currently, it trails Tata Consultancy Services by slightly more than $1 billion.

But shares of telecom majors Bharti Airtel fell 4% and Vodafone Idea slid almost 5% as the announcements spurred worries of a repeat of what happened just three years ago when Reliance’s Jio burst on to the scene.

Jio, with cheap data plans and freebies, has managed to become India’s top mobile operator by subscribers and the second-biggest globally over the three years.

Ambani said, at Reliance’s annual general meeting (AGM) on Monday, that customers of Reliance’s Premium Jiofiber broadband services “will be able to watch movies in their living rooms the same day these movies are released in theaters”.

Shares of multiplex chain operators PVR and Inox Leisure fell as much as 8% and 10%, respectively, on the news, after trading resumed following a holiday on Monday.Shares in Dish TV India were also down.

As of 0606 GMT, Reliance shares were up about 10%, while the broader market was down slightly. Reliance shares were also buoyed by the news that Saudi Aramco plans to invest roughly $15 billion for a 20% stake in its oil-to-chemicals business.


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Economy vs. environment – What you see in the mirror

Wednesday, 26 February 2020

Do we buy organic vegetables? Or are we cost conscious and buy the regular vegetables? Would we rather live in United States or United Kingdom which have higher air pollution levels, or would we live in Myanmar or....


Seven Kartajaya mantras for Sri Lankan marketers

Wednesday, 26 February 2020

Hermawan Kartajaya is the former President of the World Marketing Association and one of the top 50 marketing gurus who has shaped the world of marketing. His insight has made many companies change their business strategies....


When the saints go masquerading in

Tuesday, 25 February 2020

So that saintly MP has thrown a spanner in government’s works again. The pious member lashed out against a battery of citizens from journalists and lawyers to members of his own estate. Last week, much of his grievance was about the silence of the


So Sri Lanka; more like, so where are all the women in the hotel industry?

Tuesday, 25 February 2020

The tourism industry is a key service export of Sri Lanka. It is currently the third-largest export earner after foreign worker remittances and textiles and apparel and brought in $ 4.4 billion in 2018 alone, equivalent to 4.9% of the country’s GDP


Columnists More