Indices at new highs during the week as Reliance announce de-merger details

Rex Mathew
06 August 2005

The week once again belonged to Reliance as the company formally announced the de-merger plan after market hours on Friday. The week started on a volatile note on Monday as the markets fluctuated considerably. The sensex managed to cross the 7700 mark briefly in intra-day trades before losing ground and closing below that mark.

Strong rally in Reliance and PSU oil stocks saw the markets surge on Tuesday and the sensex closed above the 7700 mark comfortably. Expectations about a formal announcement about the de-merger at the Reliance Industries AGM kept the markets excited and the company crossed Rs1 lakh crore in market capitalisation. Reliance is the first private company and the second after ONGC among all companies to achieve this feat.

The company's AGM on Wednesday was a rather tame affair with Mukesh Ambani holding stage with huge investment plans for the company's refinery. The disappointment led to a sell-off in Reliance Industries and the indices closed the day on a flat note.

Anil Ambani provided the excitement for Thursday by announcing the de-merger details after market hours on the previous day. The Sensex promptly went past the 7800 mark, but closed marginally lower on weakness in technology and banking stocks. All round buying was seen in engineering stocks.

Friday turned out to be a day of profit booking though significant buying was seen in metals and select power stocks. The indices closed lower following the weakness in technology and banking stocks.

After the underperformance during previous week, mid-caps bounced back and surged to record levels during the week. Except on Wednesday when it closed on a flat note, the CNX Mid-Cap 100 index managed to close with strong gains through out the week. The index closed the week on Friday at a new lifetime high.