RNRL down 5% as selling continues for 2nd day; RIL up 4.48%
After the Supreme Court order on its gas dispute with RIL, Anil Ambani Group firm RNRL came under selling pressure for the second successive trading session, losing 10 per cent to touch year's low level before recovering partially, while RIL settled four per cent higher.business Updated: May 10, 2010 19:31 IST
After the Supreme Court order on its gas dispute with RIL, Anil Ambani Group firm RNRL came under selling pressure for the second successive trading session, losing 10 per cent to touch year's low level before recovering partially, while RIL settled four per cent higher.
Reliance Natural Resources Ltd (RNRL) shares touched a 52-week low of Rs 47.75, down nearly 10 per cent on the Bombay Stock Exchange during intra-day. It, however, recovered some of the losses to close at Rs 50.15, down 4.93 per cent from the previous close.
"The stock is clearly under investors' hammer. Those who were unable to book a profit by selling the stock on Friday, they exit(ed) from the scrip today," CNI Research CMD Kishor P Ostwal said.
On the National Stock Exchange, RNRL settled down 5.03 per cent at Rs 50.
On Friday, the stock had lost nearly one-fourth of its value after the Supreme Court turned down its plea for cheaper gas from Reliance Industries Ltd (RIL), saying the government had the sovereign right on price and utilisation of fuel.
However, Sensex heavyweight and the country's most valued firm, Reliance Industries Ltd, gained 4.48 per cent to end trade at Rs 1,080.20.
"We believe that though the favourable decision would be positive for sentiments, RIL need to pursue aggressive E&P strategy to develop more reserves and find new gas, which would be key value driver going ahead," Antique Stock Broking Ltd said in its report.
The gain in heavyweight RIL helped boost investors' sentiment as the benchmark Sensex settled up 3.35 per cent, or 561.44 points, at 17,330.55 points.
"The stock is a clear winner, investors are buying the stock with a long-term horizon in their mind," Ostwal added.
Meanwhile, another ADAG firm, Reliance Infrastructure, also settled up 8.49 per cent to 1,062.85. Among other group firms, RCom closed at Rs 154.70, up 1.21 per cent, and Reliance Power settled 6.28 per cent down at Rs 148.90.