RIL stock slumps on the BSE over a rig deal

Mumbai, May 22 (UNI) After a rally over three sessions, the scrip of one of India's most prestigous blue-chip entity, the Mukesh Dhirubhai Ambani Group's Reliance Industries Limited (RIL) today slumped by 0.97 per cent to Rs 1,758 on the premier Bombay Stock Exchange (BSE) on a volume of 6.18 lakh shares.

Analysts attributed the fall to the likely purchase of a deepwater rig, which they say may not prove to be an easy taxk for the company given the fact that demand is far in excess of supply in the current market dynamics in the rigs business.

Besides, the deal is estimated to cost approximately USD 1 billion and the company is working aggressively to corner rigs across the world, either by leasing them or by simply buying them out, industry watchers pointed out.

It is pertinent to note here that RIL has been hitting record highs during the past three sessions and has advanced to over 34 per cent to Rs 1,761.55 since its close of Rs 1,313.50 on Apr 2 this year. The RIL scrip witnessed a sharp uptrend after it earlier announced on Tuesday last week that it had made two gas discoveries in separate blocks off the east and west coasts of the country.

The commercial feasibility of the above discoveries, however, is still under evaluation.

UNI