A strong jump of 5.12 per cent in shares of Reliance Industries Ltd (RIL) on Monday reflects the value investors have given to the company's recently announced natural gas discovery made in the KG-D6 block.

Encouraged by the announcement of the discovery of natural gas in the flagging KG-D6 block, investors aggressively purchased the company's share. The stock jumped 5.12 per cent to close at Rs 828.25 apiece on the Bombay stock Exchange on Monday. It was RIL stock's biggest single-day gain since September 14, 2012.

Shares of RIL's partner Niko Resources made even a bigger jump of 23 per cent on NASDAQ on the announcement of the discovery.

RIL holds a 60 per cent stake in the KG-D6 block, BP holds a 30 per cent stake, while Canadian oil & natural gas producer Niko holds 10 per cent stake.

Analysts termed the find as a major discovery and have revised their targets for the block stakeholders upward.

It was but natural for investors to get encouraged by the discovery as block has been suffering huge decline in output for the last few years. Output fell from a peak of 60mscm/d in 2011 to just 28mscm/d in 2013.

The discovery seems promising, but it is too early declare it a big source of revenue for RIL and its partners as the companies have not evaluated the size and potential of the reservoir yet.