RCom, RIL shares to be most watched stocks
With the deal between RCom and MTN falling apart, amid the battle between Ambani brothers, the stocks of both the firms will be the most watched ones when the market opens on Monday.business Updated: Jul 20, 2008 13:19 IST
With the deal between Reliance Communication and South African telecom entity MTN falling apart, amid the battle between the two Ambani siblings, the stocks of RCOM and Mukesh Ambani-led Reliance Industries will be the most watched ones when the market opens on Monday.
Analysts believe the two stocks, though most watched by investors for any big movements, are expected to remain subdued this week due to the continuing tussle between Anil and Mukesh Ambani.
"RCom and RIL stocks will continue to face pressure this week amid the overall bearish sentiments in the market. The shares are expected to remain under pressure till the market situation improves," SMC Global Vice President Rajesh Jain said.
In another significant move, AAA Communications, a private company of Anil Ambani that holds 63.38 per cent equity in RCOM, wrote to RIL claiming it was "free to and shall deal with RCOM shares as it deems fit."
The RCOM-MTN deal to create a $70 billion entity fell apart as both sides confirmed that they would not be able to conclude the transaction, a day after the Mukesh Ambani initiated the arbitration process against his younger brother.
Shares of RCOM had witnessed a 20 per cent slump since May 26, the day both companies entered into an exclusive agreement for a possible merger.
RCOM shares, which were trading around Rs 543.20 on May 26, suffered the brunt of speculations to fall to Rs 435.20 on Friday last week, the day its talks with the South African telecom firm fell apart.