Reliance Industries shares reacted positively to the news of its first quarter results released late on Saturday.
Shortly before 11 a.m., the stock was trading at ₹1,002, up ₹25.30 or 2.59 per cent. The company's stock has been trading in a range during the past two months, influenced by the rethink announced by the new government about gas prices.
RIL had reported a 13.7 per cent jump in net profit at ₹5,957 crore on consolidated revenues of ₹1.07 lakh crore during the first quarter. Refining margins were lower at $8.7 per barrel in the June quarter against $9.3 per barrel in the preceding quarter.
HDFC Securities pointed out in a morning note that the Reliance Industries' stock does not usually react very strongly to its numbers. However, this time, the stock has fallen around 16% off its peak seen last month ahead of the results. This has created some room for the stock to move up, it said.
It said that the two main issues that continue to weigh on the stock are:
1. Review of the Gas Price Hike
2. Non-Settlement of the insider trading charges
Clarity for long term investors will only emerge after these are settled, but by that time the stock would have run up too, it added.
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