What’s happening?
On August 19, 2025, Sensex and Nifty enjoyed mild gains, largely thanks to a sharp 2%+ surge in Reliance Industries stock. Investors reacted positively to tariff hikes introduced by Reliance’s telecom arm, Jio, and encouraging commentary from brokerages. Reuters+1
What triggered the rally?
- Jio Nudges Up Entry-Level Tariffs
Jio has eliminated its low-end prepaid plans—specifically the ₹209 (22 days, 1 GB/day) and ₹249 (28 days, 1 GB/day) packages. The cheapest plan now kicks in at ₹299 for 28 days, offering 1.5 GB/day—bringing Jio in line with its rivals Bharti Airtel and Vodafone Idea. MoneycontrolUpstox – Online Stock and Share TradingOutlook Business - Brokerages See Revenue and ARPU Growth
- IIFL noted the discontinued ₹249 plan contributed less than 10% to Jio’s mobile revenues. A ~20% hike in entry-level pricing could boost revenue by under 2%.
- Axis Capital expects a more significant upside—projecting a 4–5% increase in Jio’s FY26 revenue and ARPU. Moneycontrol
- Jefferies and others flagged rising capitalized costs but saw improving free-cash-flow and focused on new growth drivers like broadband and enterprise. Upstox – Online Stock and Share Trading
- IIFL noted the discontinued ₹249 plan contributed less than 10% to Jio’s mobile revenues. A ~20% hike in entry-level pricing could boost revenue by under 2%.
- Strategic Expansion into Health Beverages
Reliance Consumer Products—its FMCG arm—made a bold move by acquiring a majority stake in a joint venture with Natureedge Beverages. This marks their entry into the growing functional and healthy beverages segment. ReutersThe Economic Times
Together, these developments helped RIL extend gains for a second straight session, with shares rising up to 2.31% to ₹1,413.60 on the NSE. Moneycontrol
Broader Market Climate
Markets were also buoyed by broader tailwinds: optimism around potential GST reforms aimed at stimulating consumption and relief for textile sectors thanks to the temporary removal of cotton import duties until September 30. Reuters+1Moneycontrol Meanwhile, investors remain watchful of the upcoming U.S. Federal Reserve’s Jackson Hole meeting, seeking clues on interest rate movements. Reuters+1
What Else Lies Ahead for Reliance?
- Upcoming AGM on August 29: The company’s Annual General Meeting is being eyed closely. Analysts see it as a potential catalyst for fresh direction or clarity on growth plans—including updates on new energy, Jio and retail IPO timelines, and more. The Economic TimesThe Economic Times
- Jio IPO Still Delayed: Reports suggest plans to list Reliance’s telecom arm won’t materialize in 2025. The company is reportedly focusing on consolidating its subscriber base and enhancing its digital offerings before launching an IPO. Reuters
- Macquarie Stays Bullish: Macquarie still sees upside and assigns a ₹1,580 target price, despite a year-long stock drop of 7.5%. The Economic Times Analysts also continue to highlight RIL’s structural growth potential—especially in ARPU growth, new energy sectors, and eventual IPO execution. The Economic Times
FAQ: Quick Answers
| Question | Answer |
| Why did Reliance shares rise over 2% today? | The jump was driven by Jio discontinuing low-price data plans—raising its entry-level tariff—and positive brokerage commentary projecting revenue and ARPU growth. |
| Which plans were discontinued by Jio? | Jio scrapped its ₹209 (22 days, 1 GB/day) and ₹249 (28 days, 1 GB/day) prepaid plans. The new base plan is ₹299 for 28 days with 1.5 GB/day. |
| How much could this tariff hike boost Jio’s performance? | IIFL sees an under-2% revenue boost. Axis Capital projects a 4–5% rise in FY26 revenue and ARPU. |
| Are brokerages still positive on Reliance? | Yes. Citi, Axis, IIFL, Jefferies, Nomura, Macquarie, among others, have reiterated Buy ratings with target prices ranging from ₹1,580 to ₹1,690+. |
| Will the Jio IPO happen soon? | No. It’s been delayed beyond 2025 as the focus shifts to strengthening operations before launching an IPO. |
| What else could drive RIL stock in the near term? | The upcoming AGM on August 29, updates on new energy projects, Retail/FMCG business, potential Jio/retail IPOs down the line, and global interest rate cues. |
| What external factors are influencing the market now? | Optimism over GST reforms and cotton duty relief boosted sentiment, while markets await signals from the U.S. Fed’s Jackson Hole event. |
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