New-look UPA sends ADAG stocks surging | business | Hindustan Times
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New-look UPA sends ADAG stocks surging

ADAG shares made a rally on Wednesday, just a day after the Union government won the trust vote with the help of Anil Ambani's close friend, Samajwadi Party's Amar Singh.

business Updated: Jul 23, 2008 21:42 IST

The Anil Dhirubhai Ambani Group (ADAG) shares made a rally on Wednesday, just a day after the Union government won the trust vote with the help of Anil Ambani's close friend, Samajwadi Party's Amar Singh.

Shares of the ADAG group companies went up 10 to 23 per cent on Wednesday, banking on the fact that Anil Ambani might get help from the government over a series of issues including the gas dispute agreement with his elder brother, Mukesh Ambani.

Though some analysts said Anil Ambani would definitely benefit from the new structure, where Amar Singh and SP will have an edge, many others say this would be an initial euphoria and one should look at the fundamentals of each scrip and get the valuations right.

Analysts opined that there were fundamental reasons behind some of the ADAG scrip getting momentum in these days, especially, Reliance capital. "The government is re-iterating three bills regarding the financial services sector during the coming monsoon session,” said Dev Kapadia, analyst, Lalkar Securities. “Obviously, this could boost Reliance Capital."

Apurva Shah, Head of research, Prabhudas Leeladhar said, “We had seen a 840 point rally in the market.” “Most of the stocks went up and ADAG stocks were also went up. Of course, support of SP could be a reason, but there are other fundamental factors as well.”