The Hindu Business Line : Shares move southward

THE sudden resignation of six directors of Reliance Energy sent tremors through the stock market, with shares of Reliance group companies tumbling and taking the market down with them.

Reliance Energy registered the sharpest fall of Rs 34 wiping out 5.83 per cent of the share price in a single day's trade.

Though the shares opened weak, they were making moderate progress all morning, until the news of the resignation of six board members of Reliance Energy spread. Thereafter, all four Reliance companies' shares plummeted.

The biggest casualty of the group at the bourses continued to be Reliance Energy. Reliance Energy shares had risen to Rs 589.85 in the morning. However, with the news of the resignation, the share price dropped from Rs 585.70 to Rs 549 in 11 minutes. The scrip shed Rs 34, closing the day at Rs 549.10.

Reliance Industries Ltd (RIL) had touched levels of Rs 523.35, an appreciation of Rs 8 since Wednesday's closing. But with the latest twist in the Ambani saga coming through, the scrip fell to Rs 500, before closing the day at Rs 503.55. Overall, the share shed Rs 11.45, over a 2 per cent fall during the day.

Reliance Capital and Reliance Industrial Infrastructure Ltd (RIIL) also traced a similar pattern during the day. Price of Reliance Capital went up to Rs 143.60, before shedding over Rs 7 to close at Rs 136.25. RIIL shares closed the day at Rs 73.15, down by Rs 3.30.

The market would wait for some concrete reassurances from both Mr Mukesh Ambani and his younger brother Mr Anil Ambani, before making any serious commitment to Reliance shares, according to brokers.

Overall, the equities markets were on a smart rally today, before they were stunned by the Reliance resignations. Sensex had scaled to 6,081.74, and the graph showed hardly any dips till 2:15 p.m.

Then, plummeting Reliance shares and some profit booking in derivatives, took the market down to 6,014.98.

Buying support from the bulls propped it to a close of 6,035.03, a loss of 0.92 points from Wednesday.

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