Nifty sheds 7-day of gains; Reliance stocks dip post AGM
18 June 2010
The benchmark Nifty snapped seven-day winning streak and closed marginally lower, dragged by both Reliance groups' stocks post no aggressive plans announced by Mukesh Ambani at Reliance Industries' (RIL) 36th Annual General Meeting (Annual General Meeting).
It is as usual that Mukesh Ambani did not make any major announcement at AGM. He has explained expansion plans for new telecom and power business, which he entered into after end of battle between Ambani brothers over gas pricing issue and cancellation of non-compete agreement with ADAG; wherein earlier both brothers were not allowed to enter into each other business. Even about its retail business, he says, can grow 10 fold from current Rs 4500 crore.
Elaborating further, Ambani said that the company has cash equivalent of Rs 21,874 crore, which will give space for inorganic growth.
However, the disappointment might be from its gas supply business or people were expecting more like Reliance buying stake in ADAG companies. Even he did not say anything about gas supply agreement between RIL-RNRL henceforth. In the opening speech itself, Mukesh Ambani says, his company will have a constructive relationship with ADAG and will provide gas to ADAG projects when they are ready. He said the company was conscious of government's stake in gas operations.
Reliance Industries declined 1.6%. ADAG companies' shares like Reliance Capital, Reliance Infrastructure, Reliance Power and Reliance Communications were down 3-3.9%. RNRL plunged 7.5% and Reliance MediaWorld was down 1.7%. Reliance MediaWorks lost 7%. All these shares were the most active on Friday as well as they had rallied in last few sessions ahead of that AGM.
Overall it was another day of consolidation for equity benchmarks though the Nifty managed to hit 5300 mark in an intraday trade, for the first time since April 27, 2010. The 30-share BSE Sensex closed at 17,570.82, down 45.87 points or 0.26% and the 50-share NSE Nifty fell 12.25 points or 0.23% to settle at 5,262.60.