Mumbai: India’s largest company Reliance Industries saw an uptick in foreign shareholding during the June quarter after dropping to a six-year low, as attractive valuations and positive prospects of its newly spun-off financial services unit drew global funds.
Foreign ownership in billionaire Mukesh Ambani’s company rose to 22.55 per cent in the three-months ended June after dipping to the lowest level since 2017 earlier this year, according to the latest shareholding filed by the firm on Thursday. A recent special session that saw Jio Financial Services valued at about $20 billion also helped sentiment in Reliance, which has risen more than 26 per cent from a low in March.
Still, strategists at Macquarie Capital Securities India said the rally has run its course, which may deter further demand from overseas investors. “We see RIL shares underperforming on lack of earnings follow through,” Aditya Suresh and Suresh Ganapathy wrote in a note. The firm is expected to report muted performance for the first quarter later in the day. Prior to the June-quarter, global funds had sold Reliance stock for six consecutive quarters, data compiled by Bloomberg showed.