The Telegraph
Since 1st March, 1999
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Reliance scrips wilt in the heat

Mumbai, Oct. 4: The shares of Reliance Industries (RIL) and Reliance Petroleum (RPL) were clobbered on fears that lower polymer prices and anorexic margins will bite into profits. The selloff in the two shares nudged the Bombay Stock Exchange (BSE) sensex to a 7.55-point loss.

The bulk of the selling came in from a foreign institutional investors (FII), sending the Reliance Industries share to Rs 235.60, down Rs 6.60 over its previous close; RPL shed around 60 paise to end at Rs 21.40.

Apart from declining product prices, the bear onslaught also stems from investor anxiety over expansion of the company’s equity after the RIL-RPL merger. The other concern is whether the group’s massive investments in telecom will take years to pay off.

The markets were influenced partly by the overnight losses on overseas bourses, where the Dow Jones Industrial Average and the Nasdaq Composite index dipped by about 37 points and 21 points on Thursday.

The 30-share index opened on a modest note at 2934.67 but later slithered in a narrow range to its intra-day low at 2916.38 before ending at 2930.51 compared with Thursday’s 2938.06, netting a fall of 7.55 points.

In the specified group, 75 shares, including 15 from the index, registered sharp to moderate losses; 85 advanced. The volume of business on Dalal Street was relatively thin at Rs 1234.77 crore against Rs 1317.20 crore.

Tobacco major ITC shed 13.35 to 635.15, while two-wheeler major Bajaj Auto lost Rs 2.30 at Rs 366.10. Despite better production numbers, cement major Grasim lost Rs 2.75 at Rs 310, while Gujarat Ambuja shed Rs 1.55 at Rs 163.10. Hindalco, eyeing Nalco, fell by Rs 7.30 to Rs 519.70 as anti-divestment brigade grew assertive.

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