The Reliance Industries stock rose in trade today after the conglomerate said the Reserve Bank of India (RBI) has cleared the proposed amalgamation of Reliance Holding USA Inc with Reliance Energy Generation and Distribution Limited (REGDL). Both firms are subsidiaries of Reliance Industries Ltd (RIL).
The stock rose up to 1.71% to 1117.95 in trade today compared to the previous close of 1099.05 on the BSE.
The large cap stock has been gaining for the last two days and risen 1.79% during the period. The stock has gained 20.40% during the last one year and is down 1% since January 1.
The RBI has approved the cross country amalgamation under the Foreign Exchange Management (Cross Border Merger) Regulations 2018.
The RIL board will consider the said proposal for amalgamation at a meeting. 25 of 35 brokerages rate the stock "buy" or 'outperform', five "hold", one "underperform" and four "sell", according to analysts' recommendations tracked by Reuters.
The stock is trading below its 50-day and 200-day moving average of 1121.88 and 1136.92, respectively.
On Friday, the RIL stock rose 0.67%, or 7.30 points , to Rs 1,099.50 apiece on the BSE.
Reliance Industries Limited is engaged in refining, including manufacturing of refined petroleum products, and petrochemicals, including manufacturing of basic chemicals, fertilizers and nitrogen compounds, plastic and synthetic rubber in primary forms. The company's segments include refining, petrochemicals, oil and gas, organized retail and others.
Meanwhile, the Sensex and Nifty were trading higher in afternoon trade. While the Sensex rose 270 points higher at 35,965, the Nifty gained 77 points to 10,804.