RIL shares increased to 30 lakh

The net short position of 30 lakh, on the BSE alone, reflects the absence of any floating stock in the counter. Leading US-based FIIs are believed to have picked up deliveries of over Rs three crore RIL shares in the past month, aggregating over Rs 1,000 crore in value, leading to a net short position in the market.

Sources said that there has also been significant domestic investment buying in the RIL counter over the past few weeks, after the announcement of share buy-back programme, and the declaration of excellent financial results for the year 1999-2000, reporting a net profit of 41 per cent at over Rs 2,400 crore.

RIL has announced that it was willing to invest up to Rs 1,100 crore to buy back its equity shares, at a price up to Rs 303 per share — this is being viewed as the floor price for the share for the future. The RIL stock is also coming out of the no delivery period on various exchanges this week — NSE on Tuesday, CSE on Thursday and BSE on Friday.

According to market circles, the end of the no delivery period means the short sellers on the NSE will now have no choice but to buy RIL shares on Monday and Tuesday, to square up their short positions. Likewise, on the BSE and CSE, short sellers will have to buy RIL shares, to square off their short positions, and to avoid paying ulta badla or backwardation charges. This is going to strengthen the RIL counter, sources said.

The ril share has been among the few performers in the Indianstock markets this year, having gone upto 45 per cent since the beginning of the calender year 2000, compared to a seven per cent decline in the sensex.