NDTV | Last Updated: February 20, 2013 10:51 (IST)
Reliance Industries was the top gainer on the 50-share Nifty benchmark on Wednesday. RIL shares traded with nearly 2 per cent gains, pushing the broader markets up. This is the third straight day of gains for RIL.
Here are the reasons
Reliance Industries and its UK partner BP have announced a joint investment of more than $5 billion to boost declining gas output at KG-D6 basis, India's largest offshore gas field. The investment would be spread over the next three to five years, the company said.
Falling gas production has been a big drag for RIL shares. The D6 block in the Krishna Godavari basin was expected to contribute up to a quarter of the gas supply in India, but output from the field hit a historic low last year. Gas output is the third biggest source of revenue for RIL after refining and petrochemical.
Brokerages have maintained a bullish stance on RIL since it posted its first profit increase after four quarters of declining returns. Nomura has a price target of Rs. 1,000 on the stock, while CLSA's has a target of Rs. 930.
(With inputs from Reuters)
Story first published on: February 20, 2013 10:47 (IST)