After 12 years, RIL has decided to reward its shareholders with a generous 1:1 bonus. The move is to boost up investor confidence, which had slackened following pending litigations with RNRL and NTPC. The recent treasury stock sale by RIL had also raised some concerns on valuations. It’s a no-brainer that the stock will open higher. While the stock is expected to remain firm in the near term, the question is whether one should sell or stay invested. The key indices will benefit from a firm RIL as the stock is an index heavyweight.
While the market will open higher, the overall mood will be determined by the trend in global markets. Most players are keenly awaiting the latest batch of quarterly numbers to take a broader call. Since valuations are not cheap, exercise some restraint. Even if earnings season turns out to be a strong one, spend some time weighing the risk-reward ratio. IT stocks which saw some sell-off will look for cues from Infosys tomorrow.
Expect volatility with a positive bias.
While the market will open higher, the overall mood will be determined by the trend in global markets. Most players are keenly awaiting the latest batch of quarterly numbers to take a broader call. Since valuations are not cheap, exercise some restraint. Even if earnings season turns out to be a strong one, spend some time weighing the risk-reward ratio. IT stocks which saw some sell-off will look for cues from Infosys tomorrow.
Expect volatility with a positive bias.
