Bullish for RELIANCE: Equirus Upgrades to 'LONG' on Valuation &

Equirus has upgraded its rating on Reliance Industries (RELIANCE) to 'LONG', citing attractive valuations after the stock's year-to-date underperformance against the Nifty 50. The brokerage highlights that RELIANCE's forward P/E and EV/EBITDA are near multi-year trough levels, indicating a potential undervaluation.

This upgrade from a prominent brokerage signals a potential turning point for India's largest company by market capitalization. A re-rating of RELIANCE could significantly influence the broader Nifty 50 and Sensex, given its heavy weightage, potentially attracting fresh institutional interest and driving market sentiment.

The direct impact is positive for Reliance Industries (RELIANCE), as the upgrade could lead to increased buying interest and a potential upward revision in its stock price. While not directly impacting other stocks, a strong performance by RELIANCE often provides a tailwind for the broader market, particularly large-cap indices like the Nifty 50.

Traders should monitor RELIANCE's price action for confirmation of this bullish sentiment, looking for increased volumes and a sustained move above key resistance levels. Watch for further news on specific catalysts that Equirus might be referring to, such as developments in its retail, telecom, or new energy ventures, which could accelerate the re-rating.

• •Equirus has upgraded Reliance Industries to 'LONG'.
• •Reliance has underperformed the Nifty 50 year-to-date.
• •Valuation is attractive with forward P/E compressing to ~19x (vs. average ~21x).
• •EV/EBITDA is at ~9.9x, nearing multi-year trough levels of ~9.6x.
• •Equirus believes catalysts for re-rating are emerging.