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

Facebook

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 Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.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

Go digital now

Monday, 26 August 2019

It’s a no brainer. An agency head I know recently said to me: “The jury is still out on the impact of digital advertising on client business in Sri Lanka.” I said: “What makes you say that.” He was clear. He said: “No numbers to support i


No bourgeoisie, no democracy

Monday, 26 August 2019

In the dark, forbiddingly bleak topography of our dysfunctional democracy, the emergence of the National People Power (NPP) coalition is a refreshingly propitious development. The centre-left intelligentsia could not resist comparing it to the mass


STG who became SDG of the Central Bank

Monday, 26 August 2019

A hard taskmaster as Director of Economic Research When Dr. S.T.G. Fernando, fondly known as STG, was appointed as Director of Economic Research of the Central Bank in 1979, his fame – or perhaps, notoriety – as a hard taskmaster had travelled to


The Presidential Election: Into anarchy or out of anarchy?

Saturday, 24 August 2019

In politics there are no absolute truths, rights or wrongs: all is relative. Politics is about choices and alternatives. It is also the art of the possible. The best policy for the people is to work through the give


Columnists More

Special Report

SPECIAL REPORT MORE