RIL, Chidambaram Power Street Rally Reliance shares record biggest single-day percentage gain in 3 years

Reliance Industries led the rally in benchmark indices on Monday following an ET report that the energy conglomerate has agreed to share its KG-D6 accounts with the Comptroller and Auditor General. RIL shares soared 5.7% to . 785.30, the biggest percentage jump in a day in three years, on hopes the move would speed up approvals for various proposals in four blocks, including KG-D6. "Progress on RIL's upstream investment has been held up for a long while due to lack of approvals, and we see the easing of tensions between RIL and the government to lead to greater visibility on timelines of field development and subsequent production," Edelweiss analysts Niraj Mansingka and Kiran Tulasi said in a note to clients. 

The upside in Reliance also lifted the benchmark indices where the stock enjoys the highest weightage. BSE's Sensex rose 215.03 points, or 1.25%, to end at 17,412.96. NSE's Nifty gained 66.85 points, or 1.28%, to close at 5,282.55. 
The broader market also ended firm with gainers outnumbering losers 1,676:1,162 on BSE, tracking gains in rest of the Asian markets, which were boosted by better-than-expected jobs data in the US. Finance Minister P Chidambaram's statement on Monday that the government would finetune policies and put corrective measures in place to bring a stable and non-adversarial tax regime also lifted sentiment. Regains Most-Valuable Company's Position 
Reliance regained its spot as the most valuable Indian company by market capitalisation after Monday's stock rally. It closed with a market capitalisation of . 2.54 lakh crore, almost . 13,700 crore more than software exporter TCS. "There is some hope in the market of a favourable decision from the government to speed up approvals to raise output from RIL's KG-D6 and reprice the gas. Also, refining margins are seeing some improvement," said Aneesh Srivastava, chief investment officer, IDBI Federal Life Insurance. "Though these are positive signs, we do not see any immediate signs of a fundamental turnaround as the worst may not be over yet," he said. 
RIL shares had gained about 5% in 2012 to Friday against the Sensex's rise of 11%. But, long-term funds are using further weakness in the stock to increase their holdings, said Srivastava. "They are taking comfort from the fact that the company is buying shares at lower levels as part of the share buyback programme," he said. 
Morgan Stanley, in its latest strategy report, said valuations in India are attractive and equities are almost ready for a new bull market. "The yield curve is laying the groundwork whereas the worst for liquidity is behind us — or so it seems from our assessment," Morgan Stanley strategists led by Ridham Desai said in a note to clients.