Reliance Industries Shares Surge After Jefferies' Bullish Outlook and Kotak Institutional Upgrade

Shares of Reliance Industries (RIL) surged over 1.5 percent on March 6, boosting benchmark indices, following optimistic reports from international brokerage Jefferies and Kotak Institutional Equities.

Jefferies reaffirmed its 'Buy' rating on RIL, setting a target price of ₹1,600 per share, while Kotak Institutional Equities upgraded the stock to 'Buy', citing a favorable risk-reward outlook.

At 10:50 AM, Reliance share price were trading at ₹1,194 on the BSE.

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Positive Outlook from Analysts

Jefferies' target price of ₹1,600 suggests an upside potential of approximately 34 percent, attributing this to expected growth in the retail segment and a possible tariff hike in the telecom unit. The brokerage noted that concerns around the stock appear exaggerated and projected a 15 percent recovery in retail growth for FY26.

Kotak Institutional Equities, highlighting the stock's attractive valuation following recent declines, upgraded it from 'Add' to 'Buy' with a target price of ₹1,400—indicating a potential 17 percent increase. The firm also noted that any developments regarding a possible IPO of Reliance Jio or a telecom tariff hike could serve as key catalysts.

RIL remained the top contributor to the Sensex gains on March 6.

Key Factors Driving RIL’s Growth

Retail Business Expansion: Analysts believe that RIL’s retail segment has strong growth potential, with expectations of a 15 percent recovery in FY26. Reliance Retail, a subsidiary of RIL, has been aggressively expanding its presence across various categories, including grocery, fashion, and electronics. Recent acquisitions and partnerships have further strengthened its market position, making it one of the key drivers of overall revenue growth.

Telecom Unit Developments: Another major factor contributing to the bullish sentiment is the expected tariff hike in the telecom business. Reliance Jio, the telecom arm of RIL, has consistently been a market leader in subscriber growth and data consumption. With rising operational costs and an industry-wide push for tariff hikes, analysts expect Jio to benefit significantly, thereby improving overall profitability.

Potential IPO of Reliance Jio: The possibility of an initial public offering (IPO) for Reliance Jio has been a recurring topic of discussion in the market. If Jio goes public, it could unlock significant value for shareholders and provide fresh capital for further expansion. Investors are closely monitoring any updates regarding this development, as it could act as a major catalyst for the stock.

Market Sentiment and Future Prospects

The recent surge in RIL’s stock price reflects improving investor confidence, particularly after the brokerage upgrades. The company’s diversified business model, spanning energy, retail, and telecom, offers a strong foundation for sustained growth.

Additionally, with the Indian economy showing resilience and consumer demand picking up, RIL is well-positioned to capitalize on emerging opportunities across its business segments.

In the near term, market participants will be watching for updates on tariff hikes, the potential Jio IPO, and further expansion plans in retail. Any positive developments on these fronts could drive further upside in RIL’s stock.