RIL gains on buyback of around one million shares

RIL has cumulatively bought back a total of 30 million shares representing 25% of its share buyback target

Reliance Industries (RIL) is trading higher by 1.2% at Rs 720 after the company said it bought back 900,000 shares at an average price of Rs 710.32 from the open market through stock exchanges under its ongoing share buyback program on Friday, 22 June 2012.

The company has cumulatively bought back a total of 30 million shares representing 25% of its share buyback target under the ongoing buyback program, till 22 June 2012.

RIL announced in January it would buy back up to 120 million shares at a maximum value of Rs 10,440 crore, its first share buyback since 2005 and the biggest ever in India.

Meanwhile, Moody's Investors Service says the long-term fundamentals of RIL (RIL, Baa2, positive) remain intact, despite the weak macroeconomic environment and challenges in its upstream business.

The stock opened at Rs 715 and hit a high of Rs 723 on the Bombay Stock Exchange. The stock has recovered almost 3% from Friday’s low of Rs 704, after fallen 5% in two trading sessions, after Canada's Niko Resources sharply reduced the reserves estimate at the KG D6 gas blocks.