The week has begun with a bang and thank the Ambani Brothers for that. With the Reliance Group stocks on fire as a result of the truce effected over the weekend, the Sensex is quoting at 16700, stronger by 260 points and the Nifty has reclaimed the 5000 mark and is quoting at 5006, higher by 74 points. And with RIL calling the shots, the oil and gas space has spurted more than 3% to emerge as the top sectoral gainer on the BSE. The midcap index has added 1.5% at 6794 and the small-cap index has added 1.9% at 8582.
The shares of Reliance Industries (RIL) and Anil Dhirubhai Ambani group (ADAG) firms have soared as the two Ambani brothers Mukesh and Anil took a step towards reconciliation in their long-running feud by ending non-compete agreements. RIL has strengthened by 4.1% at Rs 1037, while Reliance Infra has added 8.3% at Rs 1071 and Reliance Communication has added 4.9% at Rs 139. RNRL has soared by 24% at Rs 55 and Reliance Power has spurted by 11% at 154 and Reliance Capital is up 6% at Rs 680.
The scrapping of the non-compete agreement between the two groups means RIL can enter financial services, telecom and infrastructure sectors whereas the ADAG can enter petroleum and petrochemical businesses. The settlement comes two weeks after the Supreme Court ruled in Mukesh Ambani's favour in the gas pricing dispute case and ordered the brothers to renegotiate a private natural gas supply contract within six weeks.
Among the other notable gainers, M&M, Jaiprakash Associates and Tata Motors have added more than 2% each. On the losers side, HDFC has weakened by 1.8% at Rs 2665, Tata Power has shed 0.4% at Rs 1254 and TCS has lost 0.2% at Rs 717.
The market breadth is strong. Out of 1675 stocks traded on the BSE, there are 1403 advancing stocks as against 249 declines.
