Buzz Of New Gas Find Fuels RIL

Reliance Industries rose 1.91% to Rs 1970 at 10:22 IST on BSE on reports the company has struck gas at eight more locations in the Krishna-Godavari basin, which it intends to develop at an approximate cost of $3 billion.

Meanwhile, the BSE Sensex was up 398.58 points, or 2.99%, to 13714.18. Stocks rose across the globe on reports US policymakers will work through the weekend on a plan that will focus on dealing with illiquid assets -- the toxic source that has shattered balance sheets, pushed Lehman Brothers to file for bankruptcy protection and prompted the US bailout of American International Group this week. On BSE, 1.88 lakh shares were traded in the counter. The scrip had an average daily volume of 12.74 lakh shares in the past one quarter. The stock hit a high of Rs 2007 and a low of Rs 1962.20 so far during the day. The stock had a 52-week high of Rs 3252.10 on 15 January 2008 and a 52-week low of Rs 1764 on 18 September 2008. The scrip had underperformed the market over the past one month till 18 September 2008, falling 13.13% compared to the Sensex’s 9.08% fall. It had also underperformed the market in the past one quarter, falling 15.36% compared to Sensex’s 13.66% fall. India’s largest private sector firm by market capitalisation and oil refiner has an equity capital of Rs 1453.71 crore. Face value per share is Rs 10. The current price of Rs 1970 discounts its Q1 June 2008 annualised EPS of Rs 113.07, by a PE multiple of 17.42. According to reports, Reliance has asked the Directorate General of Hydrocarbons (DGH) for approval to develop the areas located in the Krishna Godavari basin. This is in addition to existing plans to produce 80 million cubic meters of gas a day from the D-1 and D-3 areas located in the same region. The company may start producing gas at its biggest field off the country's eastern coast in November, the DGH had said on 17 September 2008. Reliance may initially produce 15 million cubic meters a day, the reports added. Reliance Industries’ net profit rose 13.2% to Rs 4110 crore on a 40.8% rise in sales to Rs 41579 crore in Q1 June 2008 over Q1 June 2007. Reliance Industries manufactures petrochemicals, synthetic fibers, fiber intermediates, textiles, blended yarn and polyester staple fiber. The company also owns a petroleum refinery cum petrochemicals complex in Jamnagar, India that produces a wide range of products such as gasoline, superior kerosene oil and liquified petroleum gas.