In a sharp contrast to the popular notion of Reliance group deciding the course of action for Indian markets, there has been “surprisingly little collateral damage so far” from the “the bitter and very public” ongoing corporate battle between the billionaire Ambani brothers, according to a senior investment banker.
“When two elephants fight, the grass suffers. So goes the African saying, and a few years ago it would have been true of the Indian market,” Morgan Stanley Investment Management’s Emerging Markets Head Ruchir Sharma has written in an article written for Newsweek magazine.
“But the bitter and very public corporate battle between the billionaire Ambani brothers, who control the Reliance Group of companies, has produced surprisingly little collateral damage so far,” wrote Sharma in the magazine issue dated August 31.
“For a long time, the popular notion was that as the Reliance Group went, so went the Indian stock market. Now investors can ignore the family feud because the market is so much bigger.
“At the start of this decade, Reliance was one of five Indian companies with a market value of more than 5 billion dollar. Currently there are 40 such companies, the total value of the market is more than 1 trillion dollar, and the Reliance Group accounts for less than 10 per cent of the total,” the report added.