On Monday, shares of Reliance Industries Ltd. rose by 1.5%, aligning with the company’s record date for its 1:1 bonus issue. The stock movement highlights strong investor interest as shareholders anticipate receiving one bonus share per share held. Announced at Reliance’s Annual General Meeting, the bonus issue is designed to reward shareholders and boost market liquidity.

Reliance Industries, a Nifty 50 heavyweight, began trading ex-bonus today after announcing a 1:1 bonus issue ahead of its AGM. Shareholders who held shares before today’s session will receive one additional share for each owned share.
This marks the largest single-day gain for Reliance Industries shares since October 8.

BSE-Listed Firms Lose ₹41 Lakh Crore In Market Cap Since Nifty Peak; Reliance Drops 13%

Since September 27, when the Nifty reached its record high of 26,277, BSE-listed companies have seen a cumulative market capitalisation decline of ₹41 lakh crore through Friday’s close. Reliance Industries shares contributed notably to this downturn. They were dropping 13% and shedding ₹2.77 lakh crore in market cap over the period.

Reliance Industries Boosts Nifty Recovery, Nearing “Oversold” Levels

Reliance Industries shares rebounded in Monday’s trading session, contributing approximately 20 points to the Nifty 50 index’s gains after five consecutive days of losses. The stock, currently up 1.7% at ₹1,349, had approached “oversold” territory on the charts, with the Relative Strength Index (RSI) dipping to 29.5 by Friday’s close- a level indicating potential undervaluation as it sits below 30.

Analyst Sentiment and Stock Performance

Despite recent declines, with shares down nearly 18% from their peak, analysts remained optimistic. Out of 38 covering analysts, 30 maintain a “buy” rating, five recommend a “hold,” and three suggest a “sell.”

What are 1:1 Bonus Shares?

Following the company’s recent 1:1 bonus issue, Reliance Industries shareholders who held shares before today’s session are set to receive one bonus share for each share they own. For instance, a shareholder with 100 shares will now have 200 shares in total. This bonus distribution, designed to reward investors and boost share liquidity, increases the number of shares without changing the overall investment value per shareholder.