RIL tumbles 7.48,drags Sensex down; RNRL vaults 24.11

With the court verdict on gas supply going against its favour,Reliance Industries reacted sharply and dipped 7.48 per cent to Rs 2,180.45....

Written by: ENS Economic Bureau

2 min readMumbaiJun 16, 2009 01:49 AM IST

With the court verdict on gas supply going against its favour,Reliance Industries reacted sharply and dipped 7.48 per cent to Rs 2,180.45 on the Bombay Stock Exchange on Monday,dragging the the BSE Sensex down by 2.4 per cent,or 362.42 points,at 14,875.52.

The HC verdict triggered a sell-off in RIL. It affected other counters as well, said a dealer. However,shares of Reliance Natural Resources Ltd of ADAG surged 24.11 per cent to Rs 108.35 on the BSE. The scrip opened firm on the BSE at Rs 88.95 and then gained momentum and witnessed an intra-day high of Rs 112.25,a rise of 28.5 per cent from its previous closing price.

Other ADAG firms such as Reliance Infra up 1.37 per cent and Reliance Power up 4.32 per cent also gained ground.

The major reason for the slide in the markets was the RIL-RNRL verdict given by the high court favouring RNRL. As Reliance would have to sell the gas to RNRL at a price lower than the government approved price of 4.2 per mmBtu,it would affect their profit margins and the stock reacted, said Alex Mathew,head of research at Geojit BNP Paribas.

Weak global markets also added to the profit taking. World stocks fell after a call from the worlds top finance ministers to rein in unprecedented monetary and fiscal stimulus. Dealers said Mondays correction was long overdue as valuations had gone through the roof in the last four months with the Sensex rising over 90 per cent.

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