December 18, 2015

Reliance Industries: Is the tide turning in its favour?

Reliance Industries (RIL) is drawing the attention of the street with the impending launch of its much awaited 4G service. With RIL having invested heavily in its telecom venture Reliance Jio, its success and return on investments will be crucial. The venture has drawn investor concern and analysts criticism of Reliance’s investments in the sector, based on long break-even and lower returns on heavy investments. Thus, while the launch and success will be watched for keenly, investor expectations are low, and success of the venture can boost Street sentiment.

Some amount of euphoria thereby seems to be setting in. Research firm Credit Suisse said it performed extensive tests on R-Jio's network in and around Mumbai. They say that they are encouraged by the initial test results and expect the focus to shift to Reliance Jio's pricing and marketing execution.


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