Reliance Industries and Sensex ! – Analysis

Reliance Industries has been a Price shocker and in fact a laggard in the market during these turbulent times. Lets get behind the scenes on this particular stock. Last week Reliance announce that it has struck oil at the Krishna river basin on two of its wells (Dhirubhai 31 and 33). This will be a significant find for RELIND. Reliance is concurrently in talks with the US oil major CHEVRON to jointly invest in some of its global locations. In return Chevron will hold significant stake in RELIND. If Ambani is able to pull this off it will be a caper deal. The scope of this deal and its global reach and raminifications can be compared to the Arcelor-Mittal deal.

Reliance is also in talks to acquire DOW Chemicals USA for setting a stronghold in USA. This will also be a great deal if it goes through. Finally when it comes to Reliance and it has made a foray into retail that I remember mentioning in one of my blog post here https://orione.wordpress.com/2006/12/08/atlanta-limited-the-unicorn-of-indian-ipos/ . Today with discussions going with Carrefour one for the top French giants on the hypermarket space I perceive that reliance is here to stay. Word is around  that reliance is trying to buy a sizable stake in Carrefour that is on the block for sale thereby trying to beat all the legal wrangle that Bharti is facing with Walmart JV and its related FDI. Way to go for an Indian Company !

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