Mumbai: Shares of Reliance Industries Monday soared by over 5 percent, logging its biggest gain in 8 months, on robust buying as investors bet big that the energy major's new gas find in the flagging eastern offshore KG-D6 block will help reverse the falling trend in gas output.
RIL's scrip surged 5.6 percent to Rs 832 in intra-day trade on the BSE. It finally ended at Rs 828.25, up 5.12 percent. Investor wealth surged by over Rs 13,000 crore as RIL ended the day with m-cap of Rs 2.68 lakh crore.
Trading volumes were significant with 6.81 lakh shares changing hands Monday compared to 2-week average of 3.27 lakh.
The bellwether scrip was the top gainer in the 30-share BSE benchmark index Sensex and helped the index zoom by over 326 points Monday. RIL alone contributed 84.20 points to the overall Sensex's gain.
On NSE, RIL stock soared by 5.12 percent to close at Rs 826.70.
"Shares of Reliance Industries jumped more than 5 percent on the back of news that the conglomerate and its partners have made a significant gas discovery in the KG-D6 block off India's east coast," said Nagji K Rita, Chairman & MD, Inventure Growth & Securities.
Bernstein Research in a research note said that the partnership between RIL and BP is starting to pay off.
"The first test of deep syn-rift Mesozoic sediments within the KG-D6 block has yielded what could be one of the largest (2 Trillion cubic feet) gas discoveries offshore India for several years," it said.
Reliance Industries (RIL) last Friday post market hours announced a huge natural gas discovery in the KG-D6 block. RIL and its partner UK's BP plc encountered 155 metres of gas pay zone in the first exploration well drilled on the block in more than five years.
Goldman Sachs said the announced discovery looks significant given that the largest D6 discovery had a gross hydrocarbon column of 194 meters (MA-2 well).
"Moreover, if this discovery leads to a new commercial reservoir, it could meaningfully add to D6 reserves," it said.
BP holds 30 percent interest in KG-D6 while Niko has 10 percent. RIL is the operator of the block with 60 percent stake.
First Published: Monday, May 27, 2013, 17:36