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MUMBAI (AFP) – India's energy giant Reliance Industries rose nearly three percent on Tuesday, a day after Britain's BP said it would pay $7.2 billion for a stake in the group's oil assets.
Reliance Industries closed up 2.98 percent or 28.55 rupees to 985.05 on the Bombay stock exchange, bucking a falling market.
On Monday, BP and Reliance Industries announced a deal that could be worth up to $20 billion, with later investment in key Indian oil and gas assets.
BP will initially pay Reliance $7.2 billion for a 30-percent stake in 23 Indian oil and gas blocks, most of which are along the country's east coast.
Mukesh Ambani, chairman of Reliance Industries and Robert Dudley, BP's chief executive, signed the deal -- one of India's largest foreign direct investments -- in London, which experts described as "pathbreaking and historic".
Analysts said the deal would be a huge boost for Reliance and fuel-hungry India, which has been trying to boost energy production to meet the needs of its booming economy.
India imports around 80 percent of its crude oil needs.
"We expect Reliance (stock) to gain from here. The deal will lead to a huge inflow of cash for Reliance, which it could use to explore more oil blocks," said Gaurav Dua, head of research at Mumbai-based Sharekhan brokerage.
Reliance Industries closed up 2.98 percent or 28.55 rupees to 985.05 on the Bombay stock exchange, bucking a falling market.
On Monday, BP and Reliance Industries announced a deal that could be worth up to $20 billion, with later investment in key Indian oil and gas assets.
BP will initially pay Reliance $7.2 billion for a 30-percent stake in 23 Indian oil and gas blocks, most of which are along the country's east coast.
Mukesh Ambani, chairman of Reliance Industries and Robert Dudley, BP's chief executive, signed the deal -- one of India's largest foreign direct investments -- in London, which experts described as "pathbreaking and historic".
Analysts said the deal would be a huge boost for Reliance and fuel-hungry India, which has been trying to boost energy production to meet the needs of its booming economy.
India imports around 80 percent of its crude oil needs.
"We expect Reliance (stock) to gain from here. The deal will lead to a huge inflow of cash for Reliance, which it could use to explore more oil blocks," said Gaurav Dua, head of research at Mumbai-based Sharekhan brokerage.