Investors pessimistic, BSE Sensex range-bound ahead of RIL results

Range-bound movement of the BSE Sensex clearly captures the mood of market, which is not too upbeat about the fourth quarter results of market behemoth Reliance Industries (RIL).

The market is pessimistic as it expects the petrochemical major to report lower net income on account of the double whammy of lower oil & gas production as well as lower margins.

However all eyes are glued to the company's Rs 80,000 crore cash kitty.

Analysts' estimations suggest that RIL is likely to generate another Rs 71,000 crore over the next three years in the form of operating free cash flow. That is the difference between the operating profits and capital expenditure incurred.

While the company's previous buyback has not made many investors richer. This time they are hoping for something substantial - either a handsome dividend or a value accretive cash deployment like an acquisition.

Shares of RIL were trading 1.17 per cent lower on the Bombay Stock Exchange at Rs 733.05 in afternoon trade.