RIL's buyback of shares stalls slide in share price

02 November, 2012

After anti-corruption activist turned politician Arvind Kejriwal hurled serious allegations against Mukesh Ambani led Reliance Industries Limited, the company's share droped by more than two per cent during the early trade. However, by the end of trading on ThursdayRIL shares recovered from a steep fall to end up 0.2 percent after a heavy share buy-back by the company.

ACCORDING TO news agency ANI, market expert Sunil Shah said that Kejriwal has managed to create some nervousness amongst investors.

Kejriwal had yesterday accused Reliance of getting out of turn favors from the governments of the Congress as well as BJP. RIL had refuted the charges made by Kejriwal while terming them as devoid of any truths.

When the markets closed RIL's shares closed at Rs. 807, higher at 0.2 % on BSE. RIL's shares also outperformed the broader BSE energy stocks, which closed 0.3 per cent lower.

Resumption of the buyback by the company, gave the required support to the falling share prices. The RIL had announced a share buyback of Rs. 10,400 crore in January. This is the country's largest share buyback, which wil continue till January next year. Till October 30, Reliance had spent Rs. 2,797 towards share buyback.