Reliance Industries hits 1000 level after 3 years

Reliance Industries shares rose as much as 4.8 per cent to Rs 1,048, breaking above the 1,000 level for first time since April 26, 2011.

On Friday, Reliance Industries rose nearly 4 per cent to extend its two-day gains to nearly 8.5 per cent.

Reliance Industries its partners in the KG-D6 block on Saturday served a notice to the government seeking arbitration for implementation of higher gas prices. Oil minister Veerappa Moily earlier this month ordered that increases in gas prices be backdated from April 1. (Read full story)

The gas prices were not hiked from April 1 as scheduled, after the Election Commission had on March 24 sought its deferment, saying that the matter is sub-judice. CPI leader Gurudas Dasgupta and an NGO, Common Cause, had filed public interest litigations challenging the Centre's decision to double the price of natural gas.

Meanwhile, the Bharatiya Janata Party (BJP), widely expected to win the most seats in the election, has said it would review the gas pricing formula if elected.

Reliance Industries shares have been an underperformer, weighed down by the uncertainty over gas price hike and falling output from the KG-D6 basin. However, some analysts expect that clarity over gas prices post elections would help the stock.

Brokerage firm Credit Suisse has a buy rating on Reliance Industries with target price of Rs 1120, citing that exploration and production clarity post elections will be helpful and chemical business will lead growth in operating margin.

Samir Arora, fund manager of Helios Capital Management, however remains skeptical on oil & gas, particularly the PSU space, saying he remains unsure about the reforms in the sector post elections.

At 10.03 a.m, Reliance Industries shares were up 3.78 per cent to Rs 1,035, outperforming Sensex which was up 1.3 per cent.