The country's most valued firm, Reliance Industries, today surged 17 per cent in the early trade on the National Stock Exchanges, a day after it posted better-than-expected profits on earning more than average margins on refining oil, despite extreme volatility in prices.
RIL opened on a positive note at Rs 1,198 on the NSE. The stock then gained further ground and touched an intra-day high of Rs 1,335, a 17.48 per cent surge from its last close.
On the Bombay Stock Exchange the scrip followed a similar trend and opened at Rs 1,139.70. It then witnessed the day's high of Rs 1,174.35, a surge of 3.65 per cent from its previous closing price.
Billionaire Mukesh Ambani-led RIL posted a 10 per cent decline in net profit to Rs 3,501 crore in the October-December quarter as opposed to market expectations of net earnings of Rs 3,000-3,100 crore.
Sales dropped 8.75 per cent to Rs 31,563 crore during the third quarter from Rs 34,590 crore a year ago. Also earnings from its petrochemical business were down seven per cent.
Citigroup Global Markets in its report said that the RIL's upside in other exploration blocks would provide offset to any further weakening in the refining or petrochemical cycle.
"Factors such as diversity of revenues, integration across product chains, and volume growth should help RIL tide over downturns in product cycles relatively better than peers," Citigroup Global Markets added.
RIL was later trading at Rs 1,163.20, up 2.67 per cent on the BSE and at Rs 1,163.65, up 2.41 per cent on the NSE at 10:19 hrs. On the volume front over 19.73 lakh shares got traded on both the bourses.
