The stocks have a weight of 16.36 per cent in the Sensex.

After underperforming the broader markets for over a year, the share prices of Reliance group companies led by both Mukesh and Anil Ambani have outperformed the key equity index, the Sensex, of the Bombay Stock Exchange (BSE).

Also Read   Related Stories News Now - Sensex rises 273 points to six-week high; RIL up - Moody's affirms RIL ratings following Infotel buy - RIL special audit likely in 6-8-months: CAG - Mukesh plans $5-bn telecom revolution 2.0 - Corporate chiefs getting crores in salaries: 100 and counting! - RIL pegs investment for telecom entry at $5 bn

Also Read   Related Stories News Now - Markets post worst May performace since 2006 - Kavveri Telecom Q4 net declines over 6% - Wall Street opens flat on economy worries - RIM to set up first BlackBerry innovation zone in India - Rajaratnam bragged about sources of inside info: Gupta lawyers More

While the Sensex has gained 893 points, or over 5.4 per cent, from its recent low of 16,445, its most weighted scrip, Reliance Industries Ltd (RIL), has gained 6.7 per cent. Reliance Communication has been up 33.1 per cent and Reliance Infrastructure 16.8 per cent since May 23. These three contributed close to 18 per cent in the rise of Sensex from its recent low.

Market players say Reliance companies are getting re-rated, as sibling rivalry seems to have ended and the brothers are seen to be supporting each other. The Ambani family row, termed one of the worst family disputes in corporate India, reached its nadir when Anil Ambani made corruption and fraud allegations against his elder brother and top cabinet ministers in 2009. The charges were serious, as Anil Ambani said the government stood to loose Rs 30,000 crore due to RIL’s inflated capex plan in the Krishna-Godavari basin.

Any movement in Reliance stocks has a significant impact on the markets as they have a weight of 16.36 per cent in the Sensex. On April 7, when the Sensex touched its 52-week high, the share price of RIL was significantly lower than its annual highs.

“Anil Ambani’s allegations had scared investors and they were running away from all Reliance stocks. Even while the Sensex doubled after April 2009 from its low of nearly 8,000, Reliance stocks hardly moved,” said Kishor Ostwal, managing director of Mumbai-based CNI Research.

He said the scenarios had changed drastically. “All Reliance counters are getting re-rated due to the current flow of positive news. There has been a huge surge in client enquiries for Reliance counters and all top funds and punters are re-allocating their portfolios to Reliance,” said Ostwal.

Deven Choksey, chairman and managing director of K R Choksey Shares and Securities, said: “Both Reliance groups are now enjoying the complementing strength of each other, which is why markets perceive that growth will be faster. It will not be surprising if the Mukesh Ambani-led company picks up stake in Reliance Infratel, as he will need infrastructure to take its broadband wireless access services to end-users.”

Some important announcements after the scrapping of the non-compete agreement include RIL's entry into the telecom sector through purchase of Infotel for nearly $1 billion, the demerger of Reliance Infratel from Reliance Communications, the proposal of a strategic stake sale by Reliance Communications and opening of a 4,000-Mw plant on gas and coal in Maharashtra. Earlier, Reliance Communications’ efforts to acquire a global telecom company were vetoed by RIL, which had the first right of refusal.

Among other stocks, Reliance Media World has gained over 41.6 per cent. Reliance Natural Resources Ltd, which lost the recent gas dispute with RIL in the Supreme Court, rose 34 per cent. The stock was last traded at Rs 60.90 on BSE, close to the levels from which it crashed after losing the case last month. Reliance Power has risen 20.3 per cent, Reliance Infrastructure 16.8 per cent, Reliance Industrial Infrastructure 26.6 per cent and Reliance Capital managed gain 12.3 per cent since May 23.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Markets post worst May performace since 2006 - Kavveri Telecom Q4 net declines over 6% - Wall Street opens flat on economy worries - RIM to set up first BlackBerry innovation zone in India - Rajaratnam bragged about sources of inside info: Gupta lawyers

Tags : Mukesh Ambani | Anil Ambani | BSE | Reliance Industries | Reliance Communication | Reliance Infrastructure | Krishna-Godavari basin | Reliance Media World | RNRL | Reliance Power   Read Business news in  Advertisements -  India's no. 1 Property Site. Click here to know more -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  Help a Child Achieve her. Click to know more -  "Discover The Power of One" -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  Watch The Film Here. Click here to know more.. -  Learn How One City is Running on FOOD SCRAPS. -  1 billion in saving for Unilever without any tangles. -  A Brand New Server at a Price That Fits Your Budget. Click here -  One Partnership Endless Possibilities. Click here to know more -  Helping doctors detect diseases earlier, saving costs & extending lives. -  Which is the best plan for your daughter -  Check out the TRUE COLOURS of your Stocks, Now for FREE! -  One of the leading business schools in the world.Know More -  2 Lac Apartments, 1 Lac House / Plots. Click here