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Reliance Industries kissing distance away from Rs 10 lakh crore mcap as shares soar to fresh record high

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Billionaire Mukesh Ambani-led Reliance Industries is just kissing distance away from the Rs 10 lakh crore in market capitalisation, even as the shares soar to all-time high. Reliance Industries shares gained by more than 4% to hit the day’s high at Rs 1,571.75 on BSE. The firm now commands a market capitlisation of Rs 9.90 lakh crore, making it potentially the first Indian firm to top the Rs 10 lakh crore mcap figure soon. At such a value, Reliance Industries remains India's most valued company in terms of market value.

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IT giant TCS comes at a distant second with a market value of Rs 7.88 lakh crore. Interestingly, HDFC Bank has joined the top three recently, with its mcap crossing the landmark figure of Rs 7 lakh crore. Reliance Industries shares have returned a whopping 40% in the year so far. The rise in shares this morning comes after Reliance Jio on Tuesday said that it will increase tariffs in the next few weeks, in a bid to strengthen the financially stressed industry. On Monday, Vodafone Idea and Bharti Airtel had said that they will increase tariffs from December. This will be the first time since September 2016 - when Reliance Jio launched its services - that tariffs will be revised upwards by the telecom companies.

Global brokerage firm Morgan Stanley has an overweight call on Reliance Industries shares, and has announced its bull case target price at Rs 2,000 on hope of higher refinery margins, potential telecom tariff hike, bottoming P/E cycle, kickstart of gas production, lower capex and ongoing deleveraging. Given the impending tariff war in the sector, Reliance Jio may emerge as a major beneficiary as new users may gravitate towards its less expensive services. According to Anand Rathi, with the investment cycle likely having peaked, Anand Rathi the return on investment (RoI) trajectory is likely to improve going forward.