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This Article is From Mar 10, 2014

RIL shares soar 4 per cent, support markets

CLSA, which maintained its buy call on Reliance Industries with a target of Rs 1,050, said it expect the company to upgrade reserves.

Shares in Reliance Industries rose as much as 4 per cent on Monday, adding to Friday's 5.7 per cent gain, after KG-D6 block partner BP Plc highlighted recent discoveries in two blocks as "potentially commercial" in its annual report out on Thursday, dealers said.

BP did not provide any indication of the size, but CLSA sees potential for "the largest" discovery in KG-D6, noting that another partner in the block, Niko Resources, had last year also cited a significant gas recovery.

CLSA further predicted Reliance could post a record quarterly net profit of Rs 5,710 crore in the January-March quarter, up 4 per cent from the previous quarter, citing improving gasoline spreads, rising gross refining margins and a rise in gas and crude production.

Copyright Thomson Reuters 2014

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