RIL soars 5 pc; RNRL jumps 27 pc on Ambani peace pact
Shares of Mukesh Ambani-led Reliance Industries on Monday jumped 5 per cent and ADAG firm RNRL climbed nearly 27 per cent on the BSE following efforts to settle the differences between the two Groups.business Updated: May 24, 2010 10:39 IST
Shares of Mukesh Ambani-led Reliance Industries on Monday jumped 5 per cent and ADAG firm RNRL climbed nearly 27 per cent on the BSE following efforts to settle the differences between the two Groups.
RIL shares, after opening firm on the Bombay Stock Exchange, jumped 5.34 per cent to touch a high of Rs 1,049, from its previous close.
Likewise, shares of Anil Ambani Group firm Reliance Natural Resources Ltd jumped to a high of Rs 56.35, up 26.62 per cent on the BSE.
Yesterday, in a major development, the two Ambani brothers--Mukesh and Anil-- decided to bury their differences and create an environment of harmony, co-operation and collaboration between their Groups, saying this would eliminate any room for further disputes.
"Investors have welcomed the move between the two corporate behemoth of India to resolve their lingering family dispute. This is not only a positive thing for the investors of both the Groups, but also for the economy of the country as they are India's big business groups," SMC Capital vice-president Rajesh Jain said.
Meanwhile, among other ADAG firm Reliance Infrastructure shot up 8.55 per cent, Rcom by 4.57 per cent, and Rpower gained 11.54 per cent.
The gain in heavyweight RIL boosted investor sentiment and the benchmark Sensex soared 1.69 per cent, or 279.3 points, at 16,724.91 points at 0928 hrs.
The step toward a peace deal between the two brothers comes within days of the Supreme Court declining to give any relief to younger brother in the gas dispute.
On May 7, the Supreme Court in a judgement rejected RNRL's plea for cheap gas from Mukesh Ambani-led RIL.
The Court had directed RIL to initiate negotiations with RNRL within six weeks to arrive at a sale agreement within the framework of the government policy.