The anticipation surrounding Reliance Industries' (RIL) annual general meetings (AGMs) often sets the stage for significant market movements. As RIL's 46th AGM approaches, scheduled for 2 PM today, investors are keenly observing the stock's performance on such occasions. Over the past decade, RIL's AGM days have seen a mix of outcomes, revealing intriguing trends.
RIL's AGM on August 29 last year marked its 45th annual gathering. However, the stock encountered a slight dip of 0.84 percent on that day. Similarly, the AGM of 2021, the 44th in the series, led to a decline of 2.34 percent in the scrip's value. In a similar vein, on July 15, 2020, the stock experienced a fall of 3.70 percent.
Interestingly, data from corporate database AceEquity indicates that over the past 10 AGMs, RIL's shares closed negatively on seven occasions. This includes instances like 2018, 2016, 2014, and 2013 when the stock registered declines of 2.53 percent, 2.72 percent, 2.11 percent, and 0.27 percent, respectively, on AGM days.
However, there have been exceptions to this trend. The AGMs of 2019, 2017, and 2015 stood out as positive occasions for RIL's shares. The stock exhibited gains of 9.72 percent, 3.76 percent, and 1.36 percent on these respective AGM days.
The 2019 AGM, in particular, witnessed a unique scenario. Taking place on August 12, which coincided with Bakri Id, a market holiday, the scrip soared the following day. This remarkable surge was attributed to RIL's strategy to achieve zero-debt status and the groundbreaking announcement of Saudi Aramco's 20 percent investment in RIL's oil-to-chemical business.
However, not every AGM has led to positive results. In 2020, despite significant announcements such as the Rs 33,737 crore Google deal and make-in India 5G offerings, the stock endured a decline of 3.71 percent on AGM day.
Currently, over the past month, Reliance Industries shares have witnessed a 2 percent decrease. Investors are anticipated to closely follow updates regarding the potential timeline for the listing of retail and digital businesses. Moreover, any potential strategic stake sales in the O2C business, the progress of Clean Energy projects, and updates on the launch of affordable 5G smartphones are also expected to shape market sentiment.
Media reports have hinted at Reliance Jio's plans to launch Jio 5G smartphones in India, further adding to the excitement. As the company gears up for its 46th AGM, analysts are eyeing concrete announcements related to the Reliance Retail IPO and Reliance Jio IPO after the demerger of Jio Financial Services from RIL. Additionally, insights into the launch of budget-friendly 5G devices and updates on succession planning are anticipated.
As the curtain rises on another RIL AGM, the financial world waits in anticipation to witness the stock's reaction and hear about the latest strategic moves and business ventures from one of India's corporate giants.