Reliance Industries shares soar 9 pct as Narendra Modi scripts BJP win; pares gains

Written by PTI | Mumbai | Updated: May 16 2014, 23:38pm hrs
Reliance industriesShares of another listed-entity Reliance Industrial Infrastructure Ltd rose by 3.94 per cent to Rs 455.85. (Reuters)
Trimming early gains because of heavy profit-booking, shares of Reliance Industries Ltd (RIL) today ended 2.5 per cent higher.

The RIL scrip gained 8.47 per cent to Rs 1,142.50 - 52-week high - in the intra-day trade on trends indicating a clear majority for Narendra Modi-led BJP in the Lok Sabha polls.

It closed at Rs 1,080.50, up 2.59 per cent on the BSE. At the NSE, the blue-chip stock ended at Rs 1,075, up 2.05 per cent from its previous close.

Market experts said that an overall volatile market and profit-booking fuelled selling in the stock.

RIL's scrip has gained nearly 24 per cent since the BJP announced Modi, Gujarat's Chief Minister, as its Prime Ministerial candidate for the 2014 Lok Sabha elections on September 13 last year.

The market valuation of the energy major has surged Rs 67,020.93 crore in the eight months to Rs 3,49,245.93 crore.

Shares of another listed entity of the group Reliance Industrial Infrastructure Ltd gained 3.34 per cent to settle at Rs 453.20.

Ambani's Reliance has refineries at Jamnagar in Gujarat. Trends show that BJP alone would end up with nearly 280 seats, first time in about 30 years that a single party will win the majority in the Lok Sabha elections.

Anand Rathi Financial Services Ltd Managing Director Amit Rathi said: "A clear mandate by voters and a pragmatic government would go a long way in boosting economic growth in India and also the global perception of our country."

He added: "That along with a creation of conducive and stable framework for core industries like oil & gas, energy, mining and metals should boost corporate earnings and also kick start capex cycle."

Rathi also said that encouraging and nurturing entrepreneurship by itself would sweep away most of the problems in the economy and the incoming PM has an unmatched track record regarding the same.

The benchmark Sensex surged 1,470 points to hit a new life-time high of 25,375.63 in early trade retreated as profit-booking set in and closed at a record 24,121.74, a gain of 216.14 points.