Mumbai: Reliance Industries Ltd’s shares gained 2.1% after rival Essar Oil Ltd said it swung to a net profit in the October-December quarter, with gross refining margins at a healthy $9.75 a barrel.
Dealers said Essar results pointed to potentially improving refining margins at RIL when it posts results on Friday.
RIL is expected to report its first profit increase after four quarters of declining profits, according to consensus of analyst estimates, Thomson Reuters Starmine data showed.
RIL shares also gained after a Press Trust of India report said recent recommendations from a government-appointed panel to look at gas pricing will be submitted to the cabinet for consideration, citing ministry sources. Those recommendations are expected to lead to higher gas prices.
RIL declined to comment on the matter.