The oft-asked question in the market place is whether the announcement alone will be enough to lift the stock of Reliance Industries. The company's third quarter results, announced on Friday, after market hours, turned out to be dismal. Reliance's overall quarterly profits in December 2011 have dipped around 22 per cent sequentially and 14 per cent year-on-year. Amidst this backdrop, the company announced a buyback plan, under which RIL could acquire itsshares at a maximum price of Rs 870 a share (around 10 per cent premium over Friday's close). Though the expectation is that the buyback proposal could help cushion the stock's downfall, if one looks at the performance of companies that are currently buying shares from the open market, the Reliance stock could well be in trouble.
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