Oil shock: Goldman Sachs, Morgan Stanley see Reliance weathering the current storm
Shares of Reliance Industries took a beating since crude oil prices plunged to under $30 a barrel. Marketmen feared that this could affect RIL’s refinery margin and thus, its leveraged balance sheet. Besides, the current shutdown due to Covid-19 could put pressure not only on oil consumption but also on the retail segment. All these took a toll on RIL’s shares.
RIL shares crashed from ₹1,550-level in December-end to ₹875 by March 23. However, they have recovered partly since then. On Thursday, RIL shares jumped 1.3 per cent at ₹1,165.75 on the BSE.
Most analysts now see RIL withstanding the current pressure, thanks to healthy fundamentals. Besides, they feel retail and telecom will add strength to RIL, going forward.
