Reliance Industries gains post Cabinet reshuffle

MUMBAI: Shares of Reliance Industries were among the top Sensex gainers on Monday as sentiment turned bullish on the counter after M Veerappa Moily was given charge of the oil ministry following the Cabinet reshuffle.

The company had faced tough times during Jaipal Reddy’s tenure as the oil minister. The ministry had imposed a penalty of over $1 billion for a steep decline in gas output from Reliance operated D6 block.

Reliance Industries had initiated arbitration against the government after the ministry said the company cannot recover all its costs in the D6 block as it had spent excessively to build excessive infrastructure, but actual gas production was much lower than planned.

“As on today, (oil) demand is rising. So ultimately, it is energy security that has to be addressed. Delay will cost the nation and common people. We need to take decisions immediately,” said Moily after being appointed as the oil minister.

“It is politically volatile and sensitive ministry, but if you strongly go in quest of solutions, perhaps obstacles will melt away,” he added.

At 10:30 am, the stock was at Rs 808, up 1.13 per cent, on the BSE. It touched a high of Rs 811.50 and a low of Rs 803.60 in trade so far.