Reliance share trades lower ahead of AGM; here’s what to expect

Shares of Reliance Industries Ltd (RIL) slipped nearly 2% in morning trade on Monday, in sync with the broader market, ahead of its 45th Annual General Meeting (AGM) for the financial year 2021-22 scheduled for later today. The oil-to-telecom conglomerate is likely to make announcements regarding the listing of Jio Platforms and Reliance Retail, while investors will closely watch the company’s plan regarding new energy business and roll out of 5G services. The AGM will begin at 2 pm today, with a speech by Chairman Mukesh Ambani and other key members.

RIL shares were under pressure in the early trade, with the large-cap stock falling as much as 1.86% to hit a low of ₹2,570, against the previous closing price of ₹2,618.75 on the Bombay Stock Exchange (BSE). In comparison, the BSE Sensex was trading 958 points lower at 57,875 levels, with 26 of 30 constituents floating in negative terrain.

In the first hour of trade so far, 0.56 lakh stocks changed hands over the counter on the BSE as compared to the two-week average volume of 1.47 shares. The market capitalisation of the country’s most valued firm dropped to ₹17.62 lakh crore. The stock has been falling for the last four sessions and tumbled 2.4% during this period.

The share price of RIL currently trades 9% lower than its 52-week high of ₹2,855 touched on April 29, 2022, while it hit a 52-week low of ₹2,130 on September 1, 2021. The RIL shares have delivered 17% returns to its shareholders in the past year, while it has risen nearly 10% in the current calendar year. It has outperformed the BSE benchmark Sensex by 13.86% in terms of one-year return and 10.5% on a year-to-date (YTD) basis.

Technically, Reliance shares moved in a ‘Mildly Bullish’ range, trading higher than its 20-day, 50-day, 100-day, and 200-day moving averages, but lower than 5-day averages. It has gained nearly 11% in the last 6 months and over 4% in the past month.

Investors will keep a close eye on RIL AGM, with Chairman Mukesh Ambani expected to make some major announcements including the launch of 5G mobile services, investment in the new energy business, and listing of Jio Platforms and Reliance Retail on domestic bourses.

In the annual report for FY22, which was released earlier this month, Mukesh Ambani told shareholders about RIL’s green transformation plan to become one of the world’s leaders in the fight against the crisis of climate change. In green energy, Reliance is developing end-to-end green energy solutions to make them available for everyone at the most affordable price, he said.

In FY22, RIL set up the Reliance New Energy Council (‘NEC’) to identify opportunities and engage in partnerships worldwide. It is eying to reinvent itself to become a new energy major, with a focused tech roadmap of 5 to 15 years. RIL also has committed to a net carbon zero emission goal by 2035.