RBS increases Reliance Industries share target

British bank RBS said it had raised the target price on Reliance Industries to 966 rupees from 900, based on the higher value of the Indian energy major's exploration and production assets following a deal with BP.

"The BP tie-up should help resolve production issues at KG-D6, but commercial issues in terms of gas pricing will still need to be resolved," RBS said in a note issued late on Monday, while maintaining a hold rating on the stock.

Late on Monday, BP agreed to invest $7.2 billion in the Indian firm to explore for deepwater oil and gas.

On Monday, shares in Reliance closed 2% higher at Rs956.50, while the main stock index gained 1.3%.