Rpl Surges 6.74% On Value Buying

Reliance Petroleum was one of the biggest gainers in the Sensex today. The scrip surged 6.74 per cent to Rs 29.30 on the Bombay Stock Exchange (BSE).

It recovered from its intra-day low of Rs 27.20. As many as 51.51 lakh shares changed hands on the BSE. In the last few trading sessions, the shares of the largest private sector refiner had been battered as a result of the increasing fears of war between India and Pakistan.

Investors feared that the war, if it happens, would affect the functioning of the company's refinery situated at Jamnagar in Gujarat, which is an Indian Air Force base.

There were rumours that the company had shut down its refinery. However, the company later denied this. In the last two days, RPL witnessed an increase of 14 per cent to the current levels, from Rs 25.65 on December 27, 2001.

The company had lost 23.5 per cent to its December 27-levels from Rs 33.45 on December 14, 2001. During the period, volumes too dropped to 24 lakh shares from 27.18 lakh shares.

Analysts said the prime minister's statement on Saturday that India did not want a war with Pakistan had resulted in an improved sentiment in the market, and the rise in RPL was mainly due to value buying as the stock was highly attractive at the lower levels.

For the quarter ended September 2001, the company posted a 10.5 per cent rise in net profit to Rs 411 crore compared with Rs 372 crore in the corresponding period last year.

Profit for the same period in the previous year was restated from Rs 402 crore to account for a change in tax payments. RPL sets aside money in each quarter for tax purposes rather than account for it entirely at the end of the year.