Reliance Jio's new tariff plans, Rs 500 handset launch could push RIL stock to a fresh nine-year high

The Reliance Industries stock on Wednesday recovered losses in early trade amid reports that the government has sought about $3 billion from Reliance Industries, Royal Dutch Shell and ONGC following a "partial" arbitration award in its favour over cost recovery in Panna/Mukta and Tapti (PMT) oil and gas fields in the Arabian Sea.

At 10:35 am, the market heavyweight was trading 0.37 percent or 5 points higher at 1,525 level on the BSE.

Also read: Reliance Industries stock snaps nine-day winning streak on arbitration penalty

The stock closed 2.03 percent or 31.45 points lower at 1,519 level on Tuesday.

Analysts say the stock may reach its new nine-year high, citing likely announcements in the Reliance Industries AGM event scheduled for July 21 where it is likely to launch a new 4G Jio phone at an unexpected price tag of Rs 500.

Brokerage HSBC has pegged the price of the handset at as low as Rs 500, that would usher in another wave of disruption in the telecom market.

Reliance Industries could also announce a new tariff plan with aggressive price points for Jio consumers with its 84 day 'Dhan Dhana Dhan Offer' coming to an end on April 11.  

The stock hit a new nine-year high level of 1,524 on July 12 on Jio's revised tariff rates. Reliance Jio Infocomm raised the effective rates of its services with effect from July 11, 2017. The new plans entail reduced data and validity for the telco's services.

On July 17, the stock continued to rally and hit a fresh nine-year high of 1,558 level on the BSE. It is up 50 percent on yearly basis and 41 percent on an year-to-date basis.

On Monday, Reliance Industries attained a market valuation of over Rs 5 lakh crore, becoming the second firm after TCS to achieve this milestone. At close of the trade, the market capitalisation (m-cap) of RIL stood at Rs 5,04,458.09 crore, making it the most valued company in the country.

The recent rally in the stock barring Tuesday's trade is likely to continue, supporting the Sensex and Nifty's rise in the near future.