Reliance Industries: Buy - Hindu Business Line

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Apart from strengthening its position in the energy business, the company, riding on a huge cash surplus, has ambitious expansion plans in telecom, power and retail.

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Despite its June quarter results being in line with expectations, the stock of Reliance Industries Ltd (RIL), India's largest private sector company, saw no respite from its weak run. The markets seem to be have been spooked by the temporary cap on gas output from the KG-D6 basin. This, combined with concerns over overcapacity in the petrochemicals business has resulted in RIL's lacklustre run at the bourses. However, the concerns may be overdone. There has been a string of positive recent events — the shale gas interest acquisitions in North America, continuing hydrocarbon discoveries and a favourable outcome in the protracted gas supply dispute with RNRL (which has paved the way for RIL's diversification into telecom and power).

Reliance Industries: Buy - Hindu Business Line

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This page contains a single entry by Viraj published on August 8, 2010 8:45 AM.

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