RIL shares flip-flop, ADAG scrips flop
The markets gave a shortlived thumbs-up to Reliance Industries shares on Friday after Chairman and Managing Director Mukesh Ambani outlined an ambitious expansion plan to shareholders.business Updated: Jun 18, 2010 21:06 IST
The markets gave a shortlived thumbs-up to Reliance Industries shares on Friday after Chairman and Managing Director Mukesh Ambani outlined an ambitious expansion plan to shareholders. Its shares rose by 1.7 per cent in early trading but fell to close 1.5 per cent down at Rs 1,055, dipping more than the 30-share benchmark Sensex that fell just 0.3 per cent at 17,570.
Companies controlled by younger brother Anil fell even more, apparently bludgeoned by RIL’s impending entry into power and telecom sectors in which he is a key player, following the end of a non-compete agreement between the two brothers in a family division of assets.
Also, the fall is share prices was big for the companies in the Anil Dhirubhai Ambani Group (ADAG) as anticipated announcements came on stake purchases by RIL in Reliance Natural Resources Ltd (RNRL) and Reliance Communications (RCOM).
The focus on RIL was largely a long-term one, not the kind that peps up traders.
“Both retail and power sector have huge potential but while power will start delivering in the short- and medium-term, retail will deliver in the long run,” said Motilal Oswal, CMD, Motilal Oswal Financial Services.
Shares of Reliance Natural Resources fell by 7.5 per cent during the day. Reliance Capital, Reliance Power and Reliance Communications fell between 3.5 per cent and 4 per cent.