Reliance Industries' (RIL) shares tanked nearly 5 per cent during Monday's trade before closing the day nearly 3 per cent lower, as the company reported the first drop in quarterly profit in more than two years due to falling refining margins.
As a reaction to weak third quarter numbers announced after market hours on Friday, shares opened on a weak note and fell to a low of Rs 756, down 4.70 per cent from its previous closing price. RIL, however, later recovered to end the day at Rs 771, down 2.82 per cent.
On the National Stock Exchange, RIL fell 4.72 per cent to Rs 755.20 in the opening trade before paring the losses to end down 2.66 per cent at Rs 771.55.
The country's most-valued firm reported a 13.6 per cent fall in October-December net profit as refining margins fell sharply and reservoir complexity pulled down gas output.
RIL had announced a buyback of shares worth up to Rs 10,440 crore in what would be largest such programme in the history of the Indian capital market.
Analysts said that besides weak numbers they were also disappointed with the size of the buyback, which represented 3.7 per cent of the company's equity capital.
PERSPECTIVE:Behind RIL's share buyback move
RIL had in December, 2004, offered to buyback 10 per cent of its equity at Rs 570 per share.