Shares of the country's most valued firm, Reliance Industries, jumped by nearly 5% in early trade on the BSE on Tuesday as the investors cheered the company's USD 7.2 billion deal with UK energy giant BP.
BP Plc will buy a 30% stake in 23 oil and gas blocks held by Reliance Industries, including the giant KG-D6 gas fields off the East Coast, for USD 7.2 billion, and could further pay USD 1.8 billion in case of exploratory success that results in development of commercial discoveries.
Bolstered by the development, shares of Reliance Industries climbed by 4.96% to a one-month high of Rs 1,004 apiece on the Bombay Stock Exchange.
Similarly, the scrip surged by 5.06% on the National Stock Exchange to Rs 1,004.80 in the morning session.
"Strong buying interest in Reliance Industries post-the deal announcement lifted the stock. Besides, the stock has corrected quite a lot in recent sessions and is likely to continue today's rally in the coming sessions," Geojit BNP Paribas Financial Services Research Head Alex Mathews said.
The surge in Reliance Industries, which carries the maximum weight on the BSE benchmark Sensex, however, failed to provide support to the key index, which was trading 91.67 points lower at 18,346.64.