The Hindu Business Line : Reliance group shares shine in a dull market

IN a lacklustre market on Wednesday, Reliance group companies' shares shot into limelight in anticipation of an early settlement between the Ambani brothers.

Although index heavyweight Reliance Industries closed higher, the overall sentiment remained bearish with the BSE Sensex dipping by another 81 points.

With today's fall, the BSE Sensex has gone down 292 points (4.33 per cent) in the last one week.

Reliance Industries closed at Rs 553.15, up 1.6 per cent, Reliance Energy gained 0.76 per cent to close at Rs 537.35. Other Reliance Group stocks, Reliance Capital (up 13.69 per cent at Rs 173.95), IPCL (up 0.3 per cent at Rs 167.45) and Reliance Industrial Infrastructure (up 8.93 per cent at Rs 93.90), also firmed up on market talk that the feud between the Ambani brothers over ownership and control of the group might be settled soon.

Indications of a possible settlement between the brothers came as relief to the falling market, driving major stock indices into positive territory. But heavy selling from several market players could not stop the fall.

At close, the Sensex was down by 80.99 points (1.24 per cent) at 6,454.46 and NSE's S&P CNX Nifty was down by 35.20 points (1.71 per cent) to end at 2,026.40.

The hike in interest rate by 25 basis points by the US Federal Reserve also dampened the sentiment.

Even the weak trend in various global equity markets further aggravated the selling.

The end of financial year when most of the brokers settle their accounts and also the payment of taxes is also leading to selling by market players.

The breadth of the market was extremely weak on the BSE with 1,865 stocks declining compared to 526 advancing.

Brokers said one could see some more selling, as Thursday is the last day of trading this week and none of the market players would make fresh purchases on the last day of the week.

"There could be a fall of another 100-200 points for Sensex from these levels but the fresh buying should come in from next week," said a dealer with a domestic broking firm.

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