Shares of Reliance Industries surge 5% on MSO licence news

Shares of Reliance Industries rose 5% on Thursday soon after a media news portal reported that the company has bagged a pan-India multi-system operator (MSO) licence to provide cable TV services to households. Traders are bullish on the belief that this will complete its broadcast and broadband offerings under Reliance Jio as well as shake up the MSO industry. "We have received provisional licence from the I&B Ministry for pan-India MSO operations, which is subject to fi nal clearance from the Ministry of Home Affairs," a Reliance offi cial told ET. But the company’s spokesperson refused to comment or share details of the company’s plans.

RIL’s wireless broadband under Reliance Jio is expected to be rolled out in December. "I think it will be a gradual game of acquisition of subscribers once Reliance enters the cable industry. At present, listed MSOs are grappling with under-declarations from local cable operators," said Abneesh Roy, associate director at the brokerage Edelweiss Capital.

ROHIT SRIVASTAVA FUND MANAGER, SHAREKHAN

RIL can move higher in the short term as it has broken out of a 10-month long falling channel and is rising in a channel whose upper end is at 1,030 and the potential target in this move. This might be an early sign of a possible long-term reversal in the stock. Above 1,030, 1,130 would be the next important level to watch.



SANDEEP WAGLE FOUNDER & CEO, POWER MY WEALTH

RIL has broken out of a strong resistance of 944 for the fi rst time in the last 6 months on high volumes. The short term targets for the next 3 to 4 weeks is likely to be around 1,040; and once above that, the next target is likely to be 1,150 which can be achieved in the next 2 to 3 months.