RIL AGM 2011

RIL AGM 2011

Reversing the initial gains, shares of Reliance Industries slipped by nearly 1 per cent during intra-day trade on the bourses today, as the company's annual shareholders' meet turned out to be a disappointing affair.

After opening the day on a positive note, shares of the country's most valued firm in terms of market cap lost momentum and fell by 0.88 per cent to touch an intra-day low of Rs 943.40 on the BSE. On the NSE, the stock dropped by 0.79 per cent to trade at Rs 943.50.

Market men said the stock slipped as the AGM turned out to be a subdued affair, disappointing the street.

"Too many questions were left unanswered, be it the company's entry into the financial services sector, or gas ramp-up issue. Market was expecting that the company would make some announcement on acquisition front. All the issues has led to profit-booking in the counter," SMC Global Securities' Chief Strategist and Research Head Jagannadham Thunuguntla said.

In terms of volume, over 40 lakh shares of the company changed hands on the bourses by the afternoon.

Reliance today said the energy-to-retail conglomerate will be free of debt by March next year, using cash earned from selling its stake in oil and gas fields to UK's BP Plc, on whom it is also pinning hopes for reviving sagging natural gas output at the KG-D6 fields.

RIL chief Mukesh Ambani said the company plans to raise plastic manufacturing capacity and invest aggressively in its retail business by launching cash-and-carry, or wholesale, outlets.

On the company's broadband foray, he said Reliance was conceptualising its foray into broadband wireless services, but did not live up to the market expectation of unfolding a blueprint for an entry into financial services and giving guidance on when the falling output at its crown-jewel eastern offshore KG-D6 fields will be arrested.

Meanwhile, the BSE benchmark index Sensex was trading at 18,434.42, down 59.76 points, in afternoon trade.