Shares of Anil Dhirubhai Ambani Group companies were on song once again, amid easing concerns about Reliance Communications' debt.
Last week, Anil Ambani's firm reportedly signed a deal with Mukesh Ambani, as per which RCom will sell its 3G spectrum and its tower business to Reliance Jio.
Reliance Communications, Reliance Nippon Life Asset Management, Reliance Power, Reliance Capital and Reliance Infrastructure all made impressive progress up north, but Reliance Communications and Reliance Nippon failed to hold gains and ended well off the day's highs.
Reliance Communications, which saw some impressive rallies last month, ended the final session of 2017 with a big gain of over 16%, after having soared about 35% earlier in the session, on news about the company's deal with Reliance Jio. The company announced that it has signed definitive binding agreements with Reliance Jio Infocomm Limited for sale of wireless spectrum, tower, fibre and Media Convergence Node assets.
This morning, Reliance Communications shares opened nealy 4% up, but slipped into negative territory soon thereafter. The stock bounced back subsequently only to falter again in the closing minutes. It ended the day with a loss of about 1.7% at Rs 35.60 on BSE.
Shares of Reliance Nippon Life Asset Management registered a record high at Rs 310, but retreated as the session progressed to finally settle at Rs 299, little changed from previous closing price. The counter on BSE clocked a volume of 2.45 lakh shares today, more than 3 times the average daily volume.
Reliance Power shot up to 52-week high of Rs 63.60 on strong volumes this afternoon and eventually closed at Rs 61.30, gaining 22%.
On BSE, the Reliance Power counter clocked a volume of nearly 29 million shares today, as compared to average daily volume of 2.91 million shares in the last two weeks.
Reliance Naval and Engineering soared more than 38% to Rs 68.40 on BSE, where the counter recorded a volume of over 13.5 million shares today, as compared to average daily volume of just around 1.44 million shares. The exchange has sought clarification from Reliance Power and Reliance Naval & Engineering with reference to increase in stock prices.
Reliance Home Finance vaulted to Rs 104.50 around mid afternoon after a flat start and subsequent sluggish performance
Reliance Capital ended more than 4% up at Rs 602, aftet rising to Rs 614 intraday. The volume of business at Reliance Capital counter on BSE, at nearly 1.99 million shares, was less than the average daily volume of about 1.38 million shares the counter had recorded over the last couple of weeks.
Reliance Infrastructure (up 3.3%) also ended on a buoyant note. On BSE, the Reliance Infrastructure counter recorded a volume of over 9.81 lakh shares today, higher than the average daily volume of 7.6 lakh shares.
The splendid momentum may or may not sustain going forward, but it has been a great start for these stocks in the New Year.
Investors may look to take some profits, cashing in recent gains, and some may enter the counters afresh. Whether you are looking at short term or planning to remain invested for longer duration, keep tracking the developments in the Group and the overall market condition as well. For now, the next major trigger for these stocks could be the third quarter earnings reports.