Mumbai, October 12: Indian shares rose 1 percent on
Monday, led by Reliance Industries (RELI.BO) after the
estranged billionaire Ambani brothers that control the Reliance
empire spanning energy, telecommunications and financial
services raised hopes for a resolution of disputes between the
two.
“All stocks with the Reliance tag have gone up in a
knee-jerk reaction on hopes that there can be a patch up
between RIL and RNRL,” said Deven Choksey, managing director
and CEO of K.R. Choksey Shares.
“But I think it’s too late for that. It’s a corporate
battle now, with too many people involved,” he said.
By 11:20 a.m. (0550 GMT), the 30-share BSE Index .BSESN
was trading up 1.03 percent at 16,814.12 points, with 25 of its
components advancing.
Reliance Industries, controlled by elder brother Mukesh
Ambani and which has the heaviest weight in the index, climbed
1.6 percent to 2,134 rupees, while Anil Ambani-led Reliance
Natural Resources Ltd (RENR.BO)jumped 5.2 percent to 87.30
rupees.
Reliance Power (RPOL.BO), Reliance Communications
(RLCM.BO), and Reliance Infrastructure (RLIN.BO), all
controlled by Anil, were trading 1.8-3.2 percent higher.
The latest dispute has been over a deal for Reliance
Industries to sell gas to Reliance Natural at below-market
rates as agreed in a 2005 family settlement to divide the
business following the death of the brothers’ father in 2002.
In a statement on Sunday, Anil said he wanted an end to the
impasse. Reliance Industries said it welcomed the move, but
added the dispute under litigation was not merely a family
matter and that it hoped “any overtures for rapprochement are
in no way related to the ongoing hearing of the case”.
Traders said investors were awaiting August industrial
output due by midday (0630 GMT).
The median forecast in a Reuters poll showed the output may
have risen 9.2 percent from a year earlier, picking up from a
provisional 6.8 percent rise in July, on robust consumer demand
and government expenditure.
The BSE index has risen over 74 percent so far this year,
powered by foreign inflows of more than $12.8 billion and
further gains would depend upon companies perform in the coming
quarters, traders said.
In the broader market, gainers led losers in a ratio of
1.9:1 in a relatively low volume of 123 million shares.
The 50-share NSE index was up 1 percent at
4,995.20.
–Agencies