Reliance Industries, which holds the highest weighting in the benchmark 30-share Sensex index, rose to an intraday high of 1,004.0 rupees on the Bombay stock exchange.

The broader index was down nearly one percent amid concerns over unrest across the Middle East and rising crude prices.

On Monday, BP and Reliance Industries announced a deal that could be worth up to $20 billion, with later investment in key Indian oil and gas assets.

BP will initially pay Reliance $7.2 billion for a 30-percent stake in 23 Indian oil and gas blocks, most of which are along the country's east coast.

Mukesh Ambani, chairman of Reliance Industries and Robert Dudley, BP's chief executive, signed the deal.

India's single largest foreign direct investment in London, their experts described as "path breaking and historic".

Analysts said the deal would be a huge boost for Reliance and fuel-hungry India, which has been trying to boost energy production to meet the needs of its booming economy.

India imports nearly 70 percent of its energy needs.

"We expect Reliance (stock) to gain from here.

The deal will lead to a huge inflow of cash for Reliance, which it could use to explore more oil blocks," said Gaurav Dua, head of research with Mumbai-based Sharekhan.