Financial Daily from THE HINDU group of publications
Tuesday, Dec 28, 2004
Financial Daily from THE HINDU group of publications Tuesday, Dec 28, 2004 |
|
|
|
|
|
Corporate
-
Corporate Disputes Markets - Stock Markets Brothers' tussle stifles Reliance group stocks Our Bureau
Mumbai , Dec. 27 ON a day the Sensex recorded yet another all-time high, the market struggled to make sense of the multiple messages coming from the two Ambani camps, and scrips of Reliance group companies ended trade in the red. The share price of Reliance Industries Ltd (RIL) shot up to a high of Rs 544.80, when the maximum price of the buyback was announced at Rs 570. However, this gain could not be sustained as the media statements made earlier by Mr Anil Ambani, calling the buyback "inappropriate" and the fact that he did not vote on the Board's proposals, suggested that the dispute between the brothers will not be resolved in the interim, according to market sources. The shares went on a tailspin subsequently and RIL shaved off 1.29 per cent to close the day's trade at Rs 516.85, down Rs 6.75 from its previous day's close. About 77.69 lakh lakh shares were traded on the counter. RIL shares were valued at Rs. 480 on December 20, 2004, the day the buyback was announced. On November 18, 2004, before the "ownership dispute" was made public, RIL scrips were trading at Rs. 546.
Reliance Energy touched a high of Rs 540 before closing at Rs 526, down by Rs 3.75 from its previous close. About 1.85 lakh shares being traded. Reliance Capital and Reliance Industrial Infrastructure Limited closed the day at Rs 133.35 and Rs 72.35, down by 1.3 per cent and 0.55 per cent, respectively. Post the buyback announcement, institutional buying propped up the share price. Even though Rs 570 is an attractive price for the buyback, there is too much uncertainty about the future of the Reliance businesses for investors to increase their exposure in these stocks, said a broker. The bourses, in the meantime, ignored the devastation wreaked by the tidal waves across Asia and continued their euphoric bull run. The Sensex touched a record high of 6566.64 intra-day and closed comfortably above the 6500-level. The 30-stock benchmark index gained 14.97 points to close at its all-time high level of 6513.03. The Nifty ended the day flat at 2062.60. It had closed at 2062.70 on Friday. The surge in the indices is driven by the liquidity in the market, rather than any fundamental changes, say market participants. Brokers maintain that they were surprised at the market not taking cognisance of the effect of the tidal waves. Expectations before the start of trade today, were that Chennai-based companies, listed travel and tour operators, and others whose business is directly affected by the calamity would witness some panic selling. However, this was not the case. Broking houses continue to be bullish about the index moving further northwards, but have advised investors that 6500 is an attractive level for booking some profits.
More Stories on : Corporate Disputes | Stock Markets | Petroleum
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2004, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|