Reliance Industries shares surged near record highs on Friday, January 2, gaining as much as 1% after Morgan Stanley maintained its bullish outlook on the Nifty 50 heavyweight. The global brokerage reiterated its 'Overweight' rating and maintained a price target of ₹1,847 per share, representing an upside potential of approximately 18% from the stock's previous close.

Fourth Monetisation Cycle Underway

Morgan Stanley highlighted that Reliance Industries is currently navigating its fourth monetisation cycle over the past three decades. The company has successfully monetised nearly $80 billion of investments across its diverse business portfolio while simultaneously investing in future-oriented industries.

Drawing parallels with earlier cycles in 2017 and 2021, the brokerage expects the stock to witness multiple expansion and return enhancement, supported by strategic catalysts throughout 2026.

2026: A Year of Quarterly Catalysts

Morgan Stanley identified 2026 as a potential inflection year in Reliance's monetisation journey, with specific triggers expected across each quarter:

The brokerage anticipates re-rating and earnings upgrades to materialise through each quarter of 2026, driven by these sector-specific developments.

AI and Digital Infrastructure Potential

Morgan Stanley noted that underwriting of Reliance's AI data centre capacity by US hyperscalers could enhance visibility on net asset value accretion from the company's artificial intelligence investments. This development could provide additional momentum to the stock's valuation.

Analyst Sentiment and Market Performance

The stock enjoys strong analyst support, with 35 out of 37 analysts maintaining a 'Buy' recommendation, while only two analysts hold a 'Sell' rating. Shares of Reliance Industries traded 0.83% higher at ₹1,588.70, positioning just a few points below the record high of ₹1,608.

The company's historical performance during monetisation cycles demonstrates significant outperformance, with the stock delivering 35 percentage points above Sensex returns during both the 2017-19 and 2020-21 periods.

Reliance Industries chairman Mukesh Ambani has unveiled an ambitious draft AI Manifesto that aims to transform the oil-to-yarn and retail-to-telecom conglomerate into an AI-native deep-tech enterprise. The comprehensive plan targets a tenfold improvement in productivity for over 6 lakh employees while delivering a 10x impact on India's economy and society.

Vision for AI-Native Transformation

Describing artificial intelligence as "the most consequential technological development in human history," Ambani outlined Reliance's resolve to lead India's AI revolution, similar to how the group spearheaded the country's digital transformation. The manifesto centers on delivering "Affordable AI for every Indian" while embedding AI across all business operations with a focus on safety, trust, and accountability.

"At Reliance, we have embarked on a path to transform ourselves into an AI-native deep-tech company with advanced manufacturing capabilities," Ambani stated. "To pursue this resolve, we have prepared a draft of the Reliance AI Manifesto. This draft is a guide to an action plan."

Part I: Internal Organizational Transformation

The manifesto's first section focuses on internal transformation, positioning AI not as a technology project but as a fundamental new way of working. The plan involves reorganizing operations around outcomes and end-to-end workflows, supported by common digital platforms and robust governance structures.

AI and agentic automation will eliminate repetitive work, improve decision-making, and enhance quality and speed while maintaining clear human accountability. The approach emphasizes augmenting rather than replacing people, with Ambani noting: "It is not about replacing people. It is about raising standards and releasing our organisation's collective potential."

Part II: Catalyzing India's AI Revolution

The second part of the manifesto extends Reliance's AI vision to India's broader transformation through the group's businesses and philanthropic initiatives. Ambani highlighted the potential to AI-enable the company's vast consumer, retail, energy, life sciences, financial services, and media ecosystems.

Key Opportunity Areas:

• AI-powered discovery of new materials and green energy solutions
• Healthcare and education breakthroughs
• Inclusive financial services enhancement
• Indigenous AI hardware and robotics development
• Energy-efficient systems for technological self-reliance

The group sees significant scope to support suppliers, small merchants, partners, and communities through its AI initiatives, leveraging Jio's 500-million-plus subscriber base and India's largest retail network.

Employee Engagement and Implementation

Ambani has invited all employees to contribute ideas on using AI across Reliance's diverse business portfolio, spanning telecommunications, retail, energy, materials, life sciences, financial services, media, and philanthropy. The submission period runs from January 10 to 26, emphasizing the collaborative nature of this transformation.

The manifesto will serve as a shared commitment to "build a New Reliance and a New India," with Ambani describing it as a draft action guide rather than merely a slogan. The initiative underscores that AI implementation at Reliance must remain aligned with the company's 'We Care' philosophy, ensuring societal impact alongside business growth.

"Let us begin - together," Ambani concluded, positioning the AI transformation as a collective effort that will drive unprecedented improvements in velocity, efficiency, quality, and outcomes across the organization and beyond.