Shares in Reliance Industries gained on Monday on hopes that the appointment of a new oil minister would improve what has been seen as a contentious relationship between the energy conglomerate and the government.
Reliance Industries shares closed 1.5 per cent higher at Rs 811.20 on the NSE outperforming the broader BSE energy index, which ended 0.62 per cent higher.
Analysts said the change of guard at the Petroleum Ministry is a positive development for India's biggest company by market value. Veerappa Moily was appointed as the country's new Petroleum and Natural Gas Minister, replacing Jaipal Reddy, as part of a broader cabinet reshuffle unveiled on Sunday.
"Sentiment-wise this would be positive, as with the earlier minister approvals were not coming on time. Talks between the company and the ministry may improve," said an industry analyst at a large domestic brokerage, who declined to be identified.
V.K Vijayakumar, Investment strategist at Geogit BNP Paribas, said Moily may fast track some approvals.
"Further approval regarding the joint application by Reliance Industries and BP for KG-D6 gas might get expedited, that is one possibility," he said.
Reliance has clashed with the oil ministry under Reddy over gas output at the conglomerate's KG-D6 block in India's east coast. Reliance and partner BP Plc have blamed a decline in pressure and water ingress for falling production, and sought an increase in gas prices to justify higher expenditure to develop the block, but the government has so far remained unconvinced.
Shares in Reliance Industries gained on Monday on hopes that the appointment of a new oil minister would improve what has been seen as a contentious relationship between the energy conglomerate and the government.
Reliance Industries shares closed 1.5 per cent higher at Rs 811.20 on the NSE outperforming the broader BSE energy index, which ended 0.62 per cent higher.
Analysts said the change of guard at the Petroleum Ministry is a positive development for India's biggest company by market value. Veerappa Moily was appointed as the country's new Petroleum and Natural Gas Minister, replacing Jaipal Reddy, as part of a broader cabinet reshuffle unveiled on Sunday.
"Sentiment-wise this would be positive, as with the earlier minister approvals were not coming on time. Talks between the company and the ministry may improve," said an industry analyst at a large domestic brokerage, who declined to be identified.
V.K Vijayakumar, Investment strategist at Geogit BNP Paribas, said Moily may fast track some approvals.
"Further approval regarding the joint application by Reliance Industries and BP for KG-D6 gas might get expedited, that is one possibility," he said.
Reliance has clashed with the oil ministry under Reddy over gas output at the conglomerate's KG-D6 block in India's east coast. Reliance and partner BP Plc have blamed a decline in pressure and water ingress for falling production, and sought an increase in gas prices to justify higher expenditure to develop the block, but the government has so far remained unconvinced.
Shares in Reliance Industries gained on Monday on hopes that the appointment of a new oil minister would improve what has been seen as a contentious relationship between the energy conglomerate and the government.
Reliance Industries shares closed 1.5 per cent higher at Rs 811.20 on the NSE outperforming the broader BSE energy index, which ended 0.62 per cent higher.
Analysts said the change of guard at the Petroleum Ministry is a positive development for India's biggest company by market value. Veerappa Moily was appointed as the country's new Petroleum and Natural Gas Minister, replacing Jaipal Reddy, as part of a broader cabinet reshuffle unveiled on Sunday.
"Sentiment-wise this would be positive, as with the earlier minister approvals were not coming on time. Talks between the company and the ministry may improve," said an industry analyst at a large domestic brokerage, who declined to be identified.
V.K Vijayakumar, Investment strategist at Geogit BNP Paribas, said Moily may fast track some approvals.
"Further approval regarding the joint application by Reliance Industries and BP for KG-D6 gas might get expedited, that is one possibility," he said.
Reliance has clashed with the oil ministry under Reddy over gas output at the conglomerate's KG-D6 block in India's east coast. Reliance and partner BP Plc have blamed a decline in pressure and water ingress for falling production, and sought an increase in gas prices to justify higher expenditure to develop the block, but the government has so far remained unconvinced.
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