Reliance stocks zoom
The markets cheered Sunday’s agreement between the Ambani brothers, with scrips of the companies of both groups rising significantly on Bombay Stock Exchange, even as the benchmark Sensex ended the day almost flat at 0.2 per cent over the previous close, reports HT Correspondent.business Updated: May 24, 2010 22:33 IST
The markets cheered Sunday’s agreement between the Ambani brothers, with scrips of the companies of both groups rising significantly on Bombay Stock Exchange, even as the benchmark Sensex ended the day almost flat at 0.2 per cent over the previous close.
“What the markets liked is the fact that this is the first step towards resolution on compromise and it removes the uncertainty,” said Gaurav Dua, head of research at Sharekhan Securities. “While the effect on numbers is yet to be seen, I think this has lifted the investors’ sentiment.”
The movement resulted in huge gains in market cap for both groups. Anil Ambani’s ADAG saw its total market cap rise by Rs 9,552 crore. The market cap of the group led by elder brother Mukesh rose by Rs 8,525 crore.
The scrip of Reliance Natural Resources Ltd (RNRL) that has plunged 35 per cent since the Supreme Court judgement on gas pricing on May 7 came in favour of Reliance Industries Ltd, saw a sharp reversal in its share price on Monday climbing by 22.6 per cent.
Other Anil Dhirubhai Ambani Group (ADAG) stocks also saw significant spurts: Reliance Communications and Reliance Power surged by 10.9 per cent and 7.9 per cent respectively.
In the Mukesh Ambani group Reliance Industrial Infrastructure rose 11.4 per cent while the flagship Reliance Industries closed with a gain of 2.6 per cent for the day.
Experts suggest that in the coming days these stocks will follow global cues.
“Now that the news of Ambani brothers ironing out their differences has been discounted by the market, the price of these shares would not vary much from Tuesday onwards,” said Alex Mathew, head of research at Geojit BNP Paribas Financial Services.
First Published: May 24, 2010 22:31 IST