What could trigger a bounce-back in Reliance stock from a 52-week low? Mayuresh Joshi explains

Mayuresh Joshi, Head Equity, Marketsmith India, says three triggers could lift Reliance out of a 52-week low. One, any de-merger news of either the telecom or the retail operations might act as a trigger for the stock. Second, the Street would like to see if the telecom ARPU increases can be sustained going forward. That will create a huge leverage in the individual telecom balance sheet, as well as retail. The maturity of Reliance Retail stores with consumption expected to make a big comeback, after the tax cuts starting from the first half of the next financial year, can be a huge boost for the retail operations. Third, both in terms of the oil to petchem business and some hope of Chinese recovery in terms of downstream product prices, might prop up the overall ROEs provided equity levels stay at manageable levels. These two-three things might work in favour of Reliance over the medium term.
What is your current take on the chemical pack because that is one of the export-related plays and what has been happening in Europe, give us some sense that what are you picking up within the chemical basket as well as anything in particular that is looking interesting to you right now?
Mayuresh Joshi: Two things, there is one part of the chemical basket which is highly commoditised including players in the soda ash space, for example, where China has a huge dominance and the other spaces which in reality belongs to the specialty chemical space as well where there are niche players and where the expectations in terms of core applications are limited to those niche players.