Reliance stocks up on patch-up buzz

Reliance group stocks ended higher on the bourses on Wednesday amid excitement in the markets that the feuding Ambani brothers may have finally arrived at a settlement.

In an otherwise subdued market, the Reliance Industries stock's price was up 1.6 per cent to Rs 553.15, after hitting an intra-day high of Rs 570. A dealer at a domestic stock brooking firm said, "There were all sorts of rumours, advising different patterns of a settlement."

Another set of rumours talked of a private equity investor picking up a sizeable stake in Reliance Infocomm, the group's telecommunications venture.

Buying interest was seen in other group companies as well. The Reliance Energy stock ended 0.8 per cent higher at Rs 537.35 after rallying by as much as 5 per cent in intra-day trades.

The Reliance Capital stock hit the 20 per cent upper circuit filter in intra-day trades, before closing at Rs 173.95, up 13.7 per cent over yesterday's close. The Reliance Industrial Infrastructure stock rallied 8.9 per cent to Rs 93.90. The IPCL stock was up 0.3 per cent to close at 167.45 after hitting an intra-day high of Rs 175.75.

Late in the evening, a business news channel flashed a report indicating that Reliance Industries Vice-Chairman and Managing Director Anil Ambani would take control of Reliance Infocomm, which is currently run by Reliance Group Chairman Mukesh Ambani, as a part of the "settlement formula between the Ambani brothers".

However, a Reliance Infocomm spokesperson denied that a settlement between the Ambani brothers had been agreed upon on the division of the management control of the group companies.