Reliance Communications & Reliance Industries to share Fibre Optic Network!

Reliance Communications Ltd - India’s second largest telecom operator is currently in the news for a deal between Reliance communications ltd and Reliance Industries ltd in which the latter would be using the fibre optic network of Reliance Communications. The deal is expected to be benefitting both the companies. The news triggered the surging of Reliance Communications Ltd. on NSE and BSE. Presently the stock is trending petite and saw a gain of 7.3%. According to the last 52-week price change dynamics, it was perched lowest at Rs.46.55 and highest at Rs. 91.85.

Moreover, a bullish feature has been created for Reliance Communication with Morgan Stanley investment bank upgrading the company’s status from ‘equal weight’ to ‘overweight’. It is the Rs 12 billion fibre optic network sharing deal that raised the stature of the company. Furthermore, the company’s fiscal earning is estimated to rise by 125 percent in 2014. Additional deals, according to Morgan Stanley, could cut the company’s net debt by 77 billion rupees. Morgan Stanley upgraded Reliance Industries to "overweight" from "underweight" earlier in March '13 where it raised it's price to 961 rupees from 798 rupees.

Also, the market sentiment for Reliance has also improved on the fact that the friction between the Ambani brothers seems loosing with the sharing of fibre optic network giving advantage to both Reliance Communications as well as Reliance Industries.

Potential Gains indicated for RIL with Appointment of New Oil Minister

Veerappa Moily has replaced Jaipal Reddy, the ex oil minister as a part of the recent reshuffle of cabinet unveiled on Sunday. Mr. Moily promises to make an efficient effort to encourage foreign investment in addition to pushing Indian oil companies to assertively bid for foreign oil and gas to cover up the growing demands of energy.

Reliance Industries, controlled by Mukesh Ambani, had clashes with ex oil minister over the issues related to gas production at its KG-D6 block in Andhra Pradesh. Reliance Industries Ltd. along with its partner Bharat Petroleum sought a hike in the prices of gas to cope with the rising expenditure to develop the block. Mr. Moily has promised to take quick and detailed decision though he has declined to address the matter specifically.

The shares of Reliance Industries Ltd. rose, with the appointment of new oil minister, to nearly 2 per cent in view of the potential improvement in the relationship between government and RIL.

Mukesh Ambani - Reliance Industries Ltd - Tops the Forbes List!

Mukesh Ambani, chairman of Reliance Industries Ltd, with a wealth of $21 million, has emerged as India’s richest man for the fifth consecutive year, according to Forbes India annual rich list. Lakshmi Mittal has been ranked second despite the loss of $3 million in net worth since last year. Dilip Shanghavi, chairman of India’s biggest drugmaker Sun Pharmaceuticals Ltd., has been the biggest climber with an entry in top five.

Mr. Ambani has maintained the position despite the loss of 7 per cent market value by Reliance Industries Ltd. Mukesh Ambani of RIL has beaten steel tycoon Lakshmi Narayan Mittal and technology czar Azim Premji to top the list.

The 100 richest Indians saw an overall fall of worth which is 20 per cent to $241 billion in one year. The Forbes list consisted of 57 billionaires. According to Forbes, the collective wealth of India’s 100 richest people rose to $250, which is an increase of 3.7 per cent.

The Reliance Industries Ltd shares have been trending fair in the highly volatile share market.

Surging Money Market: Ray of Hope for India

Thanks to improved US jobs data sparking a global risk rally. Thanks to anticipation for government measures by the recently-appointed finance minister to clarify tax laws and of helping the mutual fund sector, which proved to be a welcome relief. Markets have surged by over one percent in today’s (6th August) trade, which is the peak close since July 11. While sensex ended at 17,412.96 points, up 1.25 percent, nifty ended at 5,282.55 points up 1.28 percent.

It was RIL. that exhibited the highest rise on the 50-share nifty index. The conglomerate soared to a four-and-a-half month high with volumes in the counter exceeding the 50-day average. At Rs 786, price of shares of RelianceIndustries Ltd NSE closed 5.9 per cent higher. No wonder, in terms of market capitalization, Reliance has emerged as India's most valued company, thus regaining the pole position. And there are genuine reasons for this sharp rise. A key meeting between Reliance Industries and officials of the oil ministry is supposedly to take place tomorrow (7th August). Investment plans for KG-D6 block including commercial viability of three new significant gas discoveries in this block are likely to be discussed. The worst hit Reliance Industries shares for the last 18 months did cast a shadow over Indian equity markets. Good times are sure to come and it is already being exhibited!

Finance Minister P. Chidambaram is all geared up to unveil a plan to rein in the country's fiscal deficit. Such measures will boost market sentiments to the favor of investors.Read complete purview on what the Finmin has in store for India at in.reuters.com