RIL tumbles 4%; becomes top sensex loser, drags markets
RIL was the biggest drag on the BSE benchmark sensex on Tuesday as it shed nearly 4%, despite having reported nearly 16% rise in net profit
By PTI | Updated:
MUMBAI: Reliance Industries Ltd (RIL) was the biggest drag on the BSE benchmark sensex on Tuesday as it shed nearly 4%, despite having reported nearly 16% rise in net profit for the second quarter this fiscal.
Shares of the company settled 3.88% lower at Rs 833.20 on the BSE. During the day, it shed 4.21% to touch a low of Rs 830.25 a piece.
RIL closed at Rs 833.80, down 3.81% from its last close on the National Stock Exchange.
The nearly 4% fall in the stock, which carries 10.72% weight on the Sensex, dragged the BSE benchmark down 57.60 points at 17,025.09.
"Profit booking in heavyweight RIL intensified the fall in the market. The company's Q2 FY'12 results (announced on Saturday) were as per the market expectations," Bonanza Portfolio Senior Research Analyst Shanu Goel said.
However, analysts said that RIL observation that its Krishna-Godavari Basin D6 gas fields have seen a sharp drop in production "mainly due to reservoir complexity", dampened investor sentiment.
Besides, brokers said that according to reports, CLSA - a brokerage and investment group - has downgraded RIL scrip to 'outperform' from 'buy' and has cut its target price to Rs 950 from Rs 960 a piece, citing premium to global peers and weak gross refining margins (GRM).
That added to the sell-off, marketmen said.
For live quotes of the 50-share Nifty index companies please click here
For live quotes of the 30-share Sensex companies please click here
Shares of the company settled 3.88% lower at Rs 833.20 on the BSE. During the day, it shed 4.21% to touch a low of Rs 830.25 a piece.
RIL closed at Rs 833.80, down 3.81% from its last close on the National Stock Exchange.
The nearly 4% fall in the stock, which carries 10.72% weight on the Sensex, dragged the BSE benchmark down 57.60 points at 17,025.09.
"Profit booking in heavyweight RIL intensified the fall in the market. The company's Q2 FY'12 results (announced on Saturday) were as per the market expectations," Bonanza Portfolio Senior Research Analyst Shanu Goel said.
However, analysts said that RIL observation that its Krishna-Godavari Basin D6 gas fields have seen a sharp drop in production "mainly due to reservoir complexity", dampened investor sentiment.
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Besides, brokers said that according to reports, CLSA - a brokerage and investment group - has downgraded RIL scrip to 'outperform' from 'buy' and has cut its target price to Rs 950 from Rs 960 a piece, citing premium to global peers and weak gross refining margins (GRM).
That added to the sell-off, marketmen said.
For live quotes of the 50-share Nifty index companies please click here
For live quotes of the 30-share Sensex companies please click here
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