The Sensex crossed the 17,000-point mark on Wednesday courtesy the the Ambani brothers. Three companies held by Mukesh and Anil accounted for 792 points of the Sensex’s jump from 15,000 to 17,000.
Of these three — Reliance Industries Ltd, Reliance Communications and Reliance Energy — the first, Mukesh’s flagship company, has the highest index weightage of 14.47 per cent. In the last six sessions, Reliance Industries moved 18 per cent before slipping 3.4 per cent on Wednesday. “The brothers are trying to outdo each other in the market cap game,” is the latest buzz on Dalal Street.
Positive news from the companies maintained the momentum. The discovery of oil and gas reserves in the Cauvery basin brought cheer at Mukesh’s end. Though one SMS from a trader said: “The market cap held by the two brothers makes me redefine PE to mean price-to-ego ratio.”
Analysts expect more value-adds. If hiving off the cellphone towers business added value to Reliance Communications, the market expects the hiving off of the exploration and production business to have the same effect on Reliance Industries.