Home > Business > PTI > Report
'Reliance will continue to drive market'
June 20, 2005 20:00 IST
Reliance companies will continue to be main "triggers" in the stock market and shareholders will gain from the division of the Rs 1,00,000 crore (Rs 1000 billion) Reliance group between the two Ambani brothers, a merchant banker involved in the valuation process said on Monday.
"Reliance was the main trigger for the market that touched the 7,000 mark today. They will continue to be that (way)," JM Financial Group chairman Nimesh Kampani said.
Mukesh Ambani's Reliance Industries, which carries high weightage in the Sensex, soared to an all-time high of Rs 637.10, a rise of Rs 36.25 or 6.03 per cent today.
After Anil Ambani announced Rs 1,000 crore (Rs 10 billion) investment in Reliance Energy, its share price witnessed Rs 97 or 16.41 per cent rise in share prices to close at Rs 688.25 during afternoon session.
Kampani, who along with ICICI Bank chairman K V Kamath helped the Ambani family in the entire process of valuation of the five Reliance companies RIL, IPCL, REL, RCL and Reliance Infocomm, said the division in the Reliance group will result in major gains for shareholders.
"One plus one will be more than two," he said referring to the arrangement that is being worked out in Reliance group. "The uncertainty in the Reliance group was over now with this split or change of management guards," he said.
On the future prospects of Reliance companies, Kampani said, "Earlier there was only one horse (Dhirubhai). Now you have two -- Mukesh and Anil. Both the brothers are hard workers, they have vision, they can add value."
As per the settlement announced by late Dhirubhai's widow Kokilaben, Mukesh gets to retain management control of RIL and IPCL, while Anil gets REL, Reliance Capital and Reliance Infocomm.