Reliance Industries surged nearly 12%, adding more than $19 billion in market value in a single day — the largest one-day gain for any Indian company. The rally followed a strong quarterly earnings beat and marks the stock’s biggest jump since April 2020. The surge bolstered the Nifty 50, which had already enjoyed a robust October, and emboldened India bulls amid falling oil prices.
Other firms like State Bank of India, Bajaj Finserv, and the National Stock Exchange are set to report earnings. NSE has drawn bullish calls from Wall Street brokerages. Meanwhile, Asian stocks opened lower as US chipmaker selloffs deepened, despite oil price drops on diplomatic progress in Iran.
Avendus Spark upgraded Reliance to 'add' from 'reduce', leaving the stock with 32 buy ratings and no holds or sells. Motilal Oswal raised its Nifty FY27 earnings estimate by 1.1%, citing upgrades to Reliance, JSW Steel, HDFC Bank, Bajaj Auto, and Kotak Mahindra Bank. Bernstein warns against assuming AI capital will shift to Indian equities, citing expensive valuations and weak earnings growth.
It expects only modest returns, though lower crude and possible tax cuts may help. Two German firms, Mahle and Schott Pharma, are exploring IPOs of their Indian units, which could raise up to $400 million each, capitalizing on premium valuations. Indian subsidiaries often trade at higher multiples than their parents — Schaeffler India at 41x earnings vs. 32x for its German parent; Siemens India at 62x forward earnings vs. 23x for Siemens AG.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing