Reliance drags sensex down

20 Nov 2004

Mumbai: Shares of the Reliance group companies fell in the stock exchanges on Friday, after Reliance chairman Mukesh Ambani's statements confirming differences between the two Ambani brothers.

Although Ambani clarified that the differences with his brother were in the private domain and it would not impact the company, as it was professionally managed, market sentiment was sharply negative.

Reliance shares dragged the index down by 63.76 points to close at 5,961.71. On a day when the sensex dropped by 1.06 per cent, shares of Reliance Industries Ltd (RIL) dropped by 3.37 per cent.

The RIL scrip closed at Rs527.15, down by Rs18.40. Reliance Energy closed at Rs620.70, nearly Rs7.75 lower from Thursday's close. Scrips of all four Reliance entities went for tumbles during Friday's trade.

At the BSE, RIL shares closed lower by 3.37 per cent, Reliance Energy by 1.23 per cent, Reliance Industrial Infrastructure Ltd by 5.84 per cent and Reliance Capital by 0.86 per cent.

Media reports suggesting that Dhirubhai Ambani did not leave a will and that, as the per laws governing Hindu succession, his widow and all four children could get equal shares of his holding, added to the uncertainty about the company.