Statements by Ambani brothers nudge shares up (Lead)

12/10/2009 Team DainikDisha

Mumbai, Oct 12 (Inditop.com) The shares of companies in the respective stables of the two feuding Ambani brothers closed higher Monday, a day after an olive branch from younger Anil, that was welcomed as a “positive indicator” by Mukesh.

Reliance Natural Resources, the energy arm of Anil Ambani group that is fighting a legal battle on gas supplies with the Mukesh-led group, shut shop at Rs.87.40 with a gain of 5.3 percent from Friday’s closing figure. It had touched an intra-day high of Rs.88.40.

Reliance Industries, the flagship of the Mukesh-led group, ended the day 3.19 percent higher at Rs.2,167.10 after touching Rs.2,185.05, data with the Bombay Stock Exchange (BSE) showed.

The scrip of Reliance Power, another Anil Ambani group firm, also added to its previous tally, rising 2.59 percent to close at Rs.164.20. It had closed Friday at Rs.160.05.

Analysts said though the movement forward was positive it was more in the form of a token rise, as many issues remained unresolved, including the crucial matter over supplies of gas from Reliance Industries to the Anil Ambani group.

“There are too many ifs and buts,” said Jagannadham Thunuguntla, equities head of leading brokerage and capital markets consultancy SMC Capital. “Till the market gets a clear indication, these developments may not make too much of an impact.”

After a pilgrimage to two holy shrines Sunday, Anil sent a conciliatory message to elder brother Mukesh, saying there was ample scope to end their dispute amicably.

“There can be no better gift to my mother, Smt. Kokilaben Ambani, in her 75th year, and to the legacy of our beloved father, Shri Dhirubhai Ambani, the proud creator of the Reliance Group,” Anil said after the pilgrimage to Badrinath and Kedarnath.

The move was welcomed by the other side, which said there can be no contentious issue that cannot be resolved by mutual dialogue. But the statement by Reliance Industries also made it clear that the dispute over gas has to be settled by the Supreme Court.