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Weak market cheers RIL

business Updated: May 07, 2010 23:11 IST
HT Correspondent
HT Correspondent
Hindustan Times
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Friday’s Supreme Court judgement on the gas dispute favouring Mukesh Ambani resulted in an immediate reaction from the market. While Anil Ambani-led Reliance Natural Resources (RNRL) and Reliance Power saw their share prices dip significantly, Mukesh Ambani’s Reliance Industries (RIL) saw its share price surge even as the Sensex fell on global cues.

The RNRL share price fell 27 per cent from Thursday’s closing of Rs 68.4 to touch a low of Rs 50 before closing at Rs 52.25 during Friday’s trading.

Similarly, the Reliance Power shares also fell by 12 per cent during the day before closing at Rs 140 — a fall of 9 per cent — at the end of Friday’s trading.

On the contrary, RIL’s stock bucked the markets and was among the few stocks that gained even as the Sensex fell by 1.3 per cent during the day.

RIL was the biggest gainer within the Sensex. While it rose by 4.8 per cent after the judgement, it closed the day at Rs 1,034 with a gain of 2.3 per cent.

“As the court has suggested for a re-negotiation, we will need to see the detailed judgment for details, however we have a buy rating on RIL,” said Motilal Oswal, CMD of Motilal Oswal Securities.

“Market reacted positively indicating RIL will stand to benefit from this decision. Up-trend for the stock may continue for some time,” said Alex Mathews, head of research at Geojit BNP Paribas Financial Services.

Speculators had played around with RNRL shares over the past 10 days leading to gains of around 17 per cent in the last week and then a fall of around 8 per cent on Tuesday.