ADAG firms Reliance Natural Resources and Reliance Infrastructure today fell by up to 1.7 per cent on bourses in morning trade, a day after market regulator Sebi issued notices to both the companies in a matter relating to stock market transactions.
Shares of Reliance Natural Resources (RNRL) declined 1.7 per cent to touch a year low of Rs 40.20 on the Bombay Stock Exchange. Similarly, Reliance Infra (RInfra) fell by 0.83 per cent to Rs 1,107.30 on BSE.
"This is a knee-jerk reaction in the stocks of both the companies which is normal after such event as investors do not expect these firms to be on the wrong side of the law," Unicon Financial Services CEO Gajendra Nagpal said.
Witnessing similar downtrend on the National Stock Exchange, RNRL fell by 1.34 per cent to an early low of Rs 40.35, while RInfra declined by 0.77 per cent to Rs 1,108.
Meanwhile, the broader gauge Sensex was trading flat at 18,096.59 points.
On June 7, SEBI had issued notices to RNRL, RInfra and their five top executives "in the matters of dealings by Reliance Natural Resources Ltd and Reliance Infrastructure Ltd."
On Monday, the regulator asked them to appear before it for personal hearing on September 3.
Besides Anil Ambani, who is the Chairman of both the companies, RInfra's Vice Chairman Satish Seth and other directors J P Chalsani, S C Gupta and Lalit Jalan were asked to submit replies by August 27 to the showcause notices given to them in June.