Markets

ADAG stocks on fire post RInfra’s cement deal

Our Bureau Mumbai | Updated on January 19, 2018 Published on February 05, 2016

bl05_ADAG stocks

Dealers said short covering and positive news were major triggers

Reliance Anil Dhirubhai Ambani group companies soared 4-7 per cent on Friday after Reliance Infrastructure’s cement deal with Birla Corporation. Dealers said a combination of bounce back in broader markets following positive market sentiments, encouraging news on cement and short-covering are the main reasons for steep rise in the group stocks.

Reliance Infrastructure was the biggest gainer at ₹437.9, up 7 per cent; Reliance Communications jumped 4.8 per cent at ₹57.65; Reliance Power gained 4 per cent at ₹46.95; and Reliance Capital moved up 6.2 per cent at Rs 351.85 on the NSE.

Whether the rally made on Friday will continue is difficult to predict as any sustained up move will need strong buy positions next week.

ADAG stocks were immensely battered in the recent market mayhem and their combined market capitalisation is down 25 per cent till date this year at ₹47,906 crore (including Friday’s up move).

On the other hand, Mukesh Ambani-led Reliance Industries has outperformed younger brother for past many years.

Published on February 05, 2016
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