RIL plays party spoiler; Sensex down 46 pts
A fall in the country's most valued company Reliance Industries dragged down the benchmark index Sensex by 46 points, cutting short the long 7-day rally.business Updated: Jun 18, 2010 20:04 IST
A fall in the country's most valued company Reliance Industries dragged down the benchmark index Sensex by 46 points, cutting short the long 7-day rally.
The 30-share index of the Bombay Stock Exchange opened on a strong note and surged 105 points in the first hour of trade -- before the start of annual general meeting of Mukesh Ambani-led RIL.
Brokers said markets could not hold on to the gains for long and swung into losses as Mukesh's unveiling of multi-billion dollar investment plans in the power sector failed to enthuse investors. The barometer finally ended the day by 45.87 points or 0.26 per cent lower at 17,570.82.
The 50-share Nifty Index of the NSE too ended 0.23 per cent at 5,262.60 points. The key index had notched up nearly 1,000 points, or 6 per cent, in the past seven trading sessions and had regained the 17,000 mark. "The Indian markets snapped its longest winning streak in over 10-months on Friday," brokerage firm India Infoline's (IIFL) VP (Research) Amar Ambani said.
Markets had built up huge expectations ahead of the Reliance Industries AGM, after the Ambani brothers burying the hatchet after five years of feud. Investors were agog that RIL would unveil the quantum of investment in the power sector. "Investors seemed to be disappointed with Mukesh Ambani's speech at the company's AGM. He did not make the kind of announcement that the market had been speculating in the wake of the truce between the two Ambani brothers," IIFL's Amar Ambani said.
RIL, which carries the maximum weight in Sensex, took a hit of 1.5 per cent as came under intense selling. "Investors were expecting announcement on the quantum of investment in the power sector. Market enthusiasm got subdued as Mukesh did not announce anything big which investors were not aware of. People were awaiting clarity on investment size," Angel Broking V-P Sarabjit Kour Nangra added. Some selling pressure was also seen in the Anil Dhirubhai Ambani Group pack. RCOM sank 3.58 per cent and was the biggest loser in Sensex components. RelInfra lost 3 per cent, RNRL 7.5 per cent, RelCap 3.94 per cent and RPower 3.61 per cent. Country biggest private sector lender ICICI Bank lost 1.91 per cent.
There were rumours yesterday that a US firm has filed a USD 1 billion law suit against the lending major, which said there was no substance to the reports. On the sectoral front, metal, oil & gas, auto and realty were the big losers, while consumer goods, FMCG and IT indices managed to end in green. Sterlite Industries declined 2.34 per cent, Hindalco 0.72 per cent, Maruti Suzuki 2 per cent, M&M 1.96 per cent.