1 / 7Sanjiv Bhasin, Director, IIFL Securities: Stay with the leader, for after almost four months Reliance is the one which has led you to this new high. It is all about Reliance and a couple of IT stocks. So Reliance, Wipro these are the ones, but the sheer weight of Reliance move has caught everyone on the side. I don't see any pessimism in the sense they are in all businesses, which are showing you robustness - the future green energy are all being discounted now. Like I said if large money has to come it has to find these types of large pivotal stocks so don't question the rally. Like you said it could be a little bit of a sour point for Bharti, but we are aware that the government is going to take some measures in reviving Vodafone and so on. So I will take it with a pinch of salt I think there is enough room for ARPUs to go up to help both Reliance and Bharti and Reliance is leading the way from the front so don't question the leader just stay with it.
2 / 7On smartphone launch by Jio | Rajesh Kothari, MD, AlfAccurate Advisors: We continue to hold Reliance Industries and remain positive for medium to long-term. This is a digital world and in a digital world, you will constantly see innovation, new product launches, new offers, new tie-ups because unless one does it, it’s not possible to accelerate the momentum. It’s part of any business and in the digital world, you will see frequent tie-ups to more offerings from the customer’s perspective.
3 / 7Harshvardhan Dole, Vice President of Institutional Equities at IIFL - I: The way we see RIL, it has a core business which is O2C and it has successfully diversified into the high growth businesses such as retail and telecom. On the retail side, the way things are, they are well-poised to triple their revenues in the next five years and more if the acquisition such as Future Group etc comes through ahead of time. In telecom, a lot will decide on the launch of the phone with Google and all eyes are out there. The way we see RIL, there is a core business where value unlocking is on cards and hopefully, that will continue to grow on a sustainable basis. The other two growth engines, which are doing reasonably okay and if all things go well, Reliance should continue to compound the earnings at 15 percent CAGR from here till next three years or so. So RIL continues to be our core holding in the portfolio.
4 / 7Prakash Diwan, Market Expert: Clearly Reliance, after fatigue we saw from the last year’s fundraiser that was so successful, is probably now looking at getting into the new orbit. Interestingly, what is keeping the stock abuzz or has started to get the stock fired up is a congregation of so many cues. So you have the news on the green fuel expansion that seems underway. The second is even the launch of the Jio phone is going to be radical. If that were to be taken off and if things that I have heard is right and $50 is what they are looking at launching it at, it could be path-breaking in terms of the transition that it would have in the new set of smartphone users coming in. That means after a long time incremental customer acquisition starts looking up very positively and the Jio Mart business has gone through very extensive ways of testing out. And then you have gas, pet-chem, I wouldn’t be surprised if by the end of September we have earnings, which also start justifying that the stock is looking up, the business is looking up much more positively. If ETF flows were to start coming back into India, there is no way they can ignore Reliance at this stage.
5 / 7On T-Mobile Netherlands news | Harshvardhan Dole, Vice President of Institutional Equities at IIFL on Reliance - II: $5-5.5 million is a materially large sum but if you look at it from RIL or news perspective, the revenues and the profitability of that company are relatively insignificant. That is the subscriber bet the company has been adding consistently on a very short period of time when it comes to India operations. One would have to see in detail as to what is the rationale for making an overseas foray and acquiring a company, which is relatively insignificant to the opportunity that you have in India. That is one. Secondly, whenever RIL has forayed into a new business or it has gone into new geographies, the stress has always been on vertical integration. So the way they have integrated operations in India, so I would be very curious to know as to what opportunities lie to integrate the operations overseas as well. So I don’t want to speculate anything at the moment. If at all the event has to unfold, let it unfold, we will analyse it when more details are available.
6 / 7Santosh Meena, Head of Research, Swastika Investmart Ltd: Reliance industries took leadership to take Nifty towards 17500 levels where it has witnessed a breakout of 1 year of consolidation that may lead to a fresh leg of the bull run in this counter after a period of underperformance where 2500 is an immediate psychological hurdle but 2850 is an imminent target. On the downside, 2375-2275 has become a strong demand zone.
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