The rally in Reliance Group stocks, because of the exuberance ahead of the annual general meeting (AGM) of Reliance Industries today, fizzled out as the day progressed. The stocks, which were up between 1-4 per cent before the AGM started, fell 1-7 per cent at the end of the trading session.
Reliance Group stocks gained between five and 63 per cent in the last three weeks following the scrapping of the non-compete agreement between Mukesh and Anil Ambani.
Markets were expecting that RIL Chairman Mukesh Ambani would announce a host of acquisition details during the AGM. However, the AGM proved to be a routine affair as Ambani senior purely focused on RIL’s capex plans and explained his foray into power and telecom.
“Expectations were that Mukesh Ambani would announce buying stakes in brother Anil’s companies or unlock value of his retail business. However, this was not the right platform for a decision of this kind as these things are outside the purview of the AGM,” said Kishor Ostwal, managing director of CNI Research.
Ostwal, however felt that complete details of the new non-compete agreement between brokers is expected soon, which will also spell out a road map for Reliance Natural Resources. “The supreme court had given Reliance six weeks to settle issues. So it is likely that a decision on RNRL is likely soon,” said Ostwal.
The top loser in the Reliance pack was Anil Ambani-promoted RNRL, down by 7.52 per cent at Rs 62.55. The stock had gained over 60 per cent over the last three weeks as the market expected RIL to buy out the company.
