SEBI effect: ADAG stocks rattled
Stocks of Anil Dhirubhai Ambani (ADA) Group companies tumbled on Monday, and its market capitalisation fell below Rs 1 lakh crore at Rs 99,375 crore, after losing Rs 6,500 crore in Monday's trading. Sandeep Singh reports.business Updated: Jan 18, 2011 02:13 IST
Stocks of Anil Dhirubhai Ambani (ADA) Group companies tumbled on Monday, and its market capitalisation fell below Rs 1 lakh crore at Rs 99,375 crore, after losing Rs 6,500 crore in Monday's trading.Share prices of the ADAG companies fell between 4.8% and 8.5%, and the value of Anil Ambani's holdings went down by Rs 4,314 crore.
"While the Sebi order will not have an impact on the businesses of the company, there was a knee jerk reaction by market participants to the consent order," said a market expert who did not wish to be named.
Market sentiments turned weak on the group companies after a consent order was passed by the Securities and Exchange Board of India (Sebi) on Friday, in a case of fraudulent and unfair trade practices between 2007 and 2009.
The consent order restrained Reliance Infrastructure and RNRL from investing in the securities markets till December 2012, and also restraining Anil Ambani and four other directors of the companies from investing in the secondary market till December this year.
The share price of Reliance Infra fell by 10.6% on Monday, before ending the day 7.8% down. Reliance Power too fell by 8.7% in intraday trade before settling 6.1% down.
The Bombay Stock Exchange benchmark Sensex closed flat.