Reliance-Facebook Deal - Mr. Deepak Jasani - Head of Research, HDFC Securities

The deal between Facebook and Reliance is a positive for Reliance Industries coming under the current trying times. The two can combine their unique strengths using their network of users, share their data, develop apps for social, digital payments, gaming, shopping, flight and hotel bookings, etc. The combination of whatsapp expertise and user base, R Jio's vast subscriber base and Facebook's deeply entrenched userbase and technology is theoretically a win-win for all.

Reliance could use the proceeds of this transaction to cut its debt and overcome doubts about debt reduction process following the oil price crash and doubts over its deal with Saudi Aramco. Clearance from the Govt for the deal will be crucial. Reliance's stock price has risen post the announcement by 13%+, compared to 12.2% rise in Aug 2019 post the announcement of a bigger deal with Saudi Aramco. The reaction of its stock price to this development could be over in a couple of days and the stock could then fall in line with the overall market.

Shares of RELIANCE INDUSTRIES LTD. was last trading in BSE at Rs.1363.35 as compared to the previous close of Rs. 1236.05. The total number of shares traded during the day was 2629550 in over 88016 trades.

The stock hit an intraday high of Rs. 1384.7 and intraday low of 1300. The net turnover during the day was Rs. 3528330242.

Source : Equity Bulls

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