The Telegraph
Since 1st March, 1999
Email This Page
7000, served up by Ambani amity

Mumbai, June 20: The sensex roared past 7,000 today, powered by a strong ballast of sentiment that had welled up over the weekend after the Ambani brothers carved up father Dhirubhai’s Rs 100,000-crore empire that they had helped him build.

The bellwether index of the stock markets scaled the peak thrice during the day, but fell back at the close of trading as operators scooped up gains from the day’s trades.

Index heavyweight Reliance Industries, the Rs 73,000-crore petroleum and oil-refining colossus which Mukesh Ambani gets to keep under the new deal, and the Anil Ambani-run Reliance Energy surged to new highs.

Infosys Technologies also made nifty gains on a day of frenzied trading, but the market’s attention was riveted on the Reliance group stocks.

Another trigger for the market surge was the arrival of the monsoon but the stocks that should have really benefited because of the heavy rains like Hindustan Lever and ITC failed to muster gains by the end of the trading day.

When trading day began for the new week, investors rushed to buy shares of the Reliance triad ' Reliance Industries, Reliance Energy and Reliance Capital.

The market was in a feisty mood when it opened today, upbeat over the fact that the Ambani duo had finally resolved their differences that had kept them in the news for all the wrong reasons over the past seven months.

“The whole settlement was welcomed by the market,” said Gul Tekchandani, a portfolio manager.

Shares in Mukesh’s Reliance Industries Ltd, the Bombay share index’s second-biggest constituent which represents more than 10 per cent of the index, rose 4.9 per cent in voluminous trades. Mukesh’s other company, Indian Petrochemicals Co. Ltd, also rose 4 per cent.

Even as Mukesh’s RIL played a major role in pushing the sensex to historic highs, Reliance Capital was on fire with the stock surging 25 per cent at Rs 294.20 after Anil announced plans to invest Rs 2,000 crore in the company with the aim of turning it into one of the top three financial services and banking monoliths in the country.

Reliance Energy, another Anil-run company, rose 11.3 per cent to Rs 658.25.

But the day was also tinged with an edge of sadness as Mukesh and Anil sent out letters to the employees of Reliance Infocomm and Reliance Industries, respectively, in which they reminisced about the good old days and exhorted them to support the other sibling.

“I leave this organisation and all of you with a deep and abiding sense of personal loss. Life, for me, will never be the same again. But evolution and change are perhaps an inevitable part of our karma,” Anil said in his letter to RIL employees.

Mukesh said: “My younger brother Anil is now taking over the stewardship of Reliance Infocomm. He has enormous energy and drive and we share a common commitment to take forward the legacy of our father Dhirubhai Ambani.”

Analysts were worried about the lack of details on the settlement and felt that the two groups should have been more transparent, especially on the amount of cash that Mukesh is believed to have forked out to clinch the deal.

Email This Page