The Hindu Business Line : Reliance stocks close in the red

SHARES of Reliance group companies, which recovered at the end of the day yesterday, showed continued volatility on Tuesday. The scrips of all four Reliance companies closed in the red today.

Three of them, except Reliance Energy, opened optimistically in the morning, as the market absorbed Mr Mukesh Ambani's clarification published on Monday.

However, this optimism was short-lived as the market continued to be wracked by many speculations about the ownership disputes.

Things came to a pass by 2:25 p.m., when the electronic media flashed the news that the rest of the Ambani family was not in concurrence with Mr Mukesh Ambani's statement.

This was followed by reports about the resignation of a director on the board of RIL, which added to the negative sentiment.

Reliance scrips registered a sharp drop subsequently. RIL ended the day with a Rs 4.50 drop in its price from Monday's closing. Intra-day, the scrip fell by Rs 14.35 and closed at Rs 528.30.

Reliance Energy posted the maximum loss for the third consecutive day, shedding Rs 7.35 before closing at Rs 598.15.

Reliance Capital shed Rs 2.20 to close at Rs 143.05. Reliance Industrial Infrastructure Ltd also closed lower by Rs 4.65 to end the day at Rs 79.50.

Meanwhile, the Sensex closed above the 6,000-level today with a gain of 46.06 points. It had touched an intra-day high of 6,031.59 but closed much lower at 6,009.86.

Cement, auto and steel stocks had a good day at the bourses.

The Nifty Junior touched a high of 3,792.85 but lost considerable ground after 2:30 p.m. to close at 3,783.30.

The index appreciated by 1.75 per cent on Tuesday's trade. Market participants said that the volatility in Reliance was likely to continue for a while.

"Investors are beginning to shy away from the scrip, as stories and speculations are flying thick and fast. As there are so many other scrips that are looking attractive, investors are skipping Reliance counters and focusing on these other stories now," said a broker.

With speculators winding and unwinding their positions on the group scrips, the volatility is getting worse, according to brokers.

Individual investors, retail and high net worth, are staying away from the scrips.

"They could be undervalued for a while now," said a broker.

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