Anil Singhvi Stock Insights: Reliance still weak? ICICI Bank showing volatility, Hindustan Zinc in focus as dollar softens

Market expert and Zee Business Managing Editor, Anil Singhvi, on Wednesday highlighted continued weakness in Reliance Industries Ltd, cautioning investors against expecting an immediate turnaround, while pointing to emerging opportunities in select banking, metals and auto stocks amid global currency movements and developments related to the India-EU free trade agreement.

Speaking during a market discussion, Singhvi said Reliance remains one of the weakest large-cap stocks at present. He noted that the stock has significantly underperformed broader indices, including the mid-cap index.

Reliance Share Price

Add Zee Business as a Preferred Source

“Reliance is falling like a mid-cap stock. While the mid-cap index has corrected around 7 per cent, Reliance is down nearly 15 per cent,” Singhvi said.

He added that the stock has shown no signs of improvement even during recent market recoveries. According to Singhvi, Reliance remained weak for the third consecutive session and touched a three-month intraday low of Rs 1,368.

“Reliance has been making lower highs and lower lows for two straight days. Even now, there are clear signals of weakness, not strength,” he said.

ICICI Bank Share Price

In contrast, Singhvi pointed to an interesting price action in ICICI Bank, despite recent weakness. He said the stock touched a two-month intraday low of Rs 1,328 before staging a sharp recovery to close at Rs 1,361.

“There was a recovery of over 30 points in ICICI Bank. After seven days of continuous weakness, the stock showed signs of volatility with both a higher high and a lower low,” he said.

Singhvi said this movement indicates increasing volatility and could mark a pause in the recent downtrend, though investors should remain cautious.

Anil Singhvi on Sectoral Trends

On sectoral trends, Singhvi said the auto sector, especially high-end car manufacturers, has come under pressure following developments related to the India-EU free trade agreement. He noted that the auto index had slipped to a four-month low due to heavy selling.

“Stocks like Mahindra and Maruti may continue to face pressure at higher levels even during recovery attempts,” he said.

Singhvi also drew attention to currency movements, stating that the US dollar index has weakened significantly and is now at a four-month low. However, he observed that the Indian rupee has not been responding strongly to the dollar’s weakness in recent sessions.

“Despite the dollar’s decline, the rupee has not shown a strong reaction. Still, dollar weakness is positive for metals and other currencies,” he said.

He highlighted sharp strength in other global currencies, including the Japanese yen and the British pound, against the dollar. According to Singhvi, sustained dollar weakness could continue to support metal stocks.

“Metals will remain in focus as long as the dollar stays weak,” he said.

Metal Stocks To Watch

Among metal stocks, Singhvi identified Hindustan Zinc as an important stock to watch. He noted that the company has initiated an offer for sale (OFS), which opens for non-institutional investors on Tuesday, institutional investors on Wednesday, and retail investors thereafter.

“Hindustan Zinc is important. There may be some action due to the OFS,” he said.

Singhvi said promoters are selling around 1.5 per cent stake, expected to raise approximately Rs 500 crore. He also highlighted historical data, noting that promoters had acquired a similar stake several years ago for about Rs 250–500 crore and later sold it through buyback at a much higher valuation.

“After nearly nine returns, promoters are selling part of their stake. Given the current strength in silver and metals, response to the OFS is expected to be positive,” Singhvi said.

He added that silver prices have seen some cooling, but overall metal fundamentals remain supportive in the current global environment.