Market rally fizzles out

Our Bureau Mumbai | Updated on July 15, 2020 Published on July 15, 2020

A sharp decline in the stock markets on Wednesday coincided with the Annual General Meeting (AGM) of Reliance Industries Ltd (RIL). At 1.55 pm, the key indices were trading near the highs of the day — Sensex up by more than 700 points, and Nifty up 200 points. But at 3.15 pm, a little over one hour into RIL’s AGM, the indices not just gave up their gains of more than 2 per cent but even slipped into the red.

Experts told BusinessLine that such market moves are usual during RIL’s AGM, which often builds up expectations.



The RIL share price, which has been on a sharp up-move for the past several weeks, fell by nearly 5 per cent intra-day. After touching a high of ₹1,978, RIL closed at ₹1,854, down 3.71 per cent — its biggest single day decline in two months.

“Nothing surprising. A sharp fall in markets and RIL share price during Wednesday’s AGM, which largely met all the expectations, followed the usual pattern.

“The over $4-billion investment in RIL by Google, its single biggest in an Indian company, was more positive than the news of a delay in investment by Saudi Aramco. History will tell you that RIL shares rise on expectations of a news and fall on its confirmation. RIL has been rising for three months ahead of the AGM... naturally, Wednesday was the climax,” said Kishor Ostwal, MD, CNI Global Research.

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Published on July 15, 2020
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