RNRL slides 19 pc, RIL soars 5 pc on SC verdict
Shares of Reliance Industries bounced back from the day's low gaining 3 per cent, while RNRL plunged nearly 10 per cent on the BSE after the Supreme Court delivered its verdict.business Updated: May 07, 2010 13:38 IST
Reliance Natural Resources (RNRL) went into a free fall on Friday, plunging over 19 per cent, after the Supreme Court ruled against the division of gas under the Ambani family MoU, leading the Reliance Industries counter to extend gains to over five per cent.
Shares of RNRL, which had gained in the early trade, tanked 19.16 per cent to a 52-week low of Rs 55.25, after the
Supreme Court rejected the division of gas under the Ambani family MoU and said that it was the government's right to
decide the price and utilisation of the fuel, which is a national asset.
RNRL registered the biggest monthly gain in over a month in April on anticipation of the court verdict.
Country's most valued firm Reliance Industries, gained over Rs 49 a share or 4.86 per cent to a high of Rs 1,060. The
company's current market capitalisation is Rs 3.41 lakh crore.
Today's gains reversed the losses of the last six trading session on the counter that saw the shares tank over 2 per
cent. RIL shares had dipped below the Rs 1,000-level in the early trade.
Meanwhile, another ADAG firm Reliance Infrastructure also slid 7.50 per cent to Rs 974.50. Among other Group firms RCom was down nearly 4 per cent to a year's low level of Rs 151.
While RIL was the biggest gainer among the 30-Sensex companies, Reliance Infra was the biggest loser.
However, the gain in heavyweight RIL failed to pull up the broader market as the benchmark Sensex has quoting over
200 points down at 16,785.25.
"The hefty decline in the ADAG pack is holding the market back despite gain in RIL counter," Geojit BNP Paribas Research Head Alex Mathews said.
Delivering the majority verdict of the bench headed by Chief Justice K G Balakrishnan on the four-year gas dispute
between RIL and RNRL, Justice P Sathasivam said the Production Sharing Contract overrides all other agreements.
The family agreement -- signed among brothers Mukesh and Anil Ambani and their mother Kokilaben -- was not legally and technically binding.