RIL surges 1.55% on bourses

Stocks of Reliance Industries surged by as much as 1.55% in morning trade on the bourses today after the Oil Ministry referred its 7.2 billion deal for sale of a stake in 23 oil and gas properties to UK-based BP Plc to the Cabinet Committee on Economic Affairs for approval.

The counter witnessed an intra-day high of Rs 865.90 on the Bombay Stock Exchange, up 1.55% from its previous closing price. It was later trading at Rs 863.60, up 1.28% on the Bombay Stock Exchange.

On the National Stock Exchange as well, the stock rose to an intra-day high of Rs 866.20, up 1.55% from its last close, and was later quoted at Rs 864, up 1.30%.

Marketmen said the uptrend in the counter came on the back of the Oil Ministry's decision to refer the $7.2 billion deal to the Cabinet Committee on Economic Affairs (CCEA) for approval.

The move comes four months after UK's BP Plc agreed to buy a 30% stake in Reliance Industries' oil and gas blocks.

The $7.2 billion deal is the single largest foreign direct investment in the country and Reliance had on February 25 made a formal application to the Oil Ministry for approval of the transfer of stake to Europe's second biggest oil company.

The decision to refer the deal to CCEA, which is likely to delay approval for the deal, came more than a month after the Ministry of Home Affairs gave security clearance to the BP stake acquisition.