CLSA has maintained its outperform Reliance with a 12-month Rs 850.

“Reliance has announced an intention to launch a buyback of its shares; regulations suggest that it could be upto USD 2.9 billion. Should it follow through, unlike in previous buybacks, we would view it as a constructive use of its USD 15 billion cash that would add ~2% to EPS. Reliance’s weak earnings momentum remains a concern but the buyback should offer some support leading up to more positive newsflow in second half of 2012 (telecom launch, polyester expansions) allowing it to O-PF in a weak market,” CLSA says.