RIL shares off day’s high after AGM

About 9.57 lakh shares of the company changed hands on the BSE,while over 63 lakh shares were traded on the NSE.

Shares of Reliance Industries Ltd (RIL) today closed up nearly 1 per cent after paring initial lofty gains amid the company’s 38th Annual General Meeting.

After surging 2.49 per cent during the day,shares of the company lost some ground and closed at Rs 720.70,up 0.92 per cent on the BSE. At the NSE,the scrip settled 0.85 per cent higher at Rs 722.

About 9.57 lakh shares of the company changed hands on the BSE,while over 63 lakh shares were traded on the NSE.

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Another group firm,Reliance Industrial Infrastructure Ltd closed with nearly 2 per cent gains at Rs 408.65.

“RIL scrip was active today as the company held its AGM announcing plans to double its operating profit in about five years,” Shanu Goel Research Analyst Bonanza Portfolio said.

A K Prabhakar,Senior VP Equity Research,Anand Rathi Financial Services said: “There was no talk on telecom business front in terms of any plan roll out going forward. Overall not much could be interpreted from the AGM.”

He also said that the company’s buyback is just supporting the stock price and RIL shares are expected to consolidate in the range of Rs 600-800 levels for next one year.

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Meanwhile,Reliance Industries today announced plans to invest Rs 100,000 crore across energy,retail and telecom businesses in the next five years to double operating profit.

RIL aims to increase revenue from retail business by as much as six times in 3-4 years and is targeting a ten-fold increase in sales from its shale gas business in the US,Chairman Mukesh Ambani told company shareholders here today.

RIL also said it has bought back stocks worth Rs 1,929 crore since the launch of share repurchase programme in February — achieving 22.5 per cent of the targeted amount.

RIL,which began a buyback programme of Rs 10,440 crore early this year,has so far purchased shares to the tune of Rs 1,929 crore through open market transactions.

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On its telecom foray,RIL is finalising 4G commercial rollout plans but Ambani did not give a firm date for the launch of the much-anticipated service.

The stock has been under some pressure in the recent past and had hit a low of Rs 671 last month on May 8. However,it has recouped some ground in the last few days.

RIL has also lost its long-held status as the country’s most valued company to Tata group firm TCS. At the end of today’s trade,RIL’s market value stood at Rs 2,35,996 crore,as against TCS’ m-cap of Rs 2,42,783 crore.

RIL,however,remains the Sensex’s most influential stock. At close today,RIL has a weightage of 9.29 per cent,while ITC had 9.27 per cent weight,followed by Infosys that had 8.57 per cent weightage on the BSE Sensex.