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Our Bureau

Mumbai, Sept. 24 Monday’s trading on the stock exchanges saw several Reliance stocks – spanning both the Mukesh and Anil Ambani groups – strike new highs.

This trend had set in on Friday itself, following several positive announcements relating to infrastructure, oil and gas. Reliance Industries announced an oil discovery in the Krishna-Godavari basin, geographically close to where it had made the world’s largest gas discovery in 2002.

Besides, the RIL gas pricing issue saw its resolution, all of which added to the appetite for the stock; in addition there was some talk of Reliance hiving off its exploration business, said a broker with a large fund.

“This rise in their stock prices is due to a combination of the general energy in the markets, the new money that is flowing into the country, and the news flow that has been happening of late on the Reliance companies,” said Mr. Raamdeo Agrawal who heads Motilal Oswal Financial Services.

“And new investors tend by default go for the blue chip companies, and, among them, the Reliance companies,” said Mr Agrawal. “The news flow has helped too.”

“The Reliance houses are getting into seven or eight verticals which also enhances the valuations of the parent companies,” said the head of a broking firm who did not want to be named.

Reliance Industries rose by 3.62 per cent on the BSE on Monday, closing at Rs 2,356.70

Group company Reliance Petroleum rose by 8.03 per cent, to close at Rs 167.40; while Reliance Industrial Infrastructure Ltd rose by 10 per cent, to Rs 1,147.40.

In the Anil Ambani fold, Reliance Energy was Monday’s largest gainer among the Sensex stocks, rising by 8.33 per cent to close at Rs 1,093.70. The company has its power generation targets and appears to be interested in buying mines, said a broker.

Reliance Natural Resources gained 21.97 per cent, at Rs 93.55, on news that it had applied for gas distribution licenses. Its affiliate company Reliance Fuel Resources has indeed submitted an application to the Government for gas distribution projects for Mumbai, Delhi and the National Capital Region areas, a statement from RNRL said on Monday.

Reliance Communications rose by 3.26 per cent (closing at Rs 598.25), in keeping with the upward movement of the Indian telecom stocks that have reported massive monthly additions to their subscriber base. Reliance Capital rose by 2.09 per cent (Rs 1,574.05) and Adlabs Films by 1.03 per cent (Rs 554.50).

The ADAG group issued a statement late in the day to say that the group’s market capitalisation had crossed the Rs 2-lakh crore mark.

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