ADAG stocks in limelight

Font Size

Print

Feedback

Email

Discuss

Save & Share Article

What’s this?

Digg	My Yahoo	Fark
del.icio.us	Newsvine	Reddit

Rate This Article

Rating:  0

The sharp pull-back of share prices across the board, following the successful trust vote by the Congress-led United Progressive Alliance (UPA) government at the Centre on Tuesday, saw most of the stocks from the Anil Dhirubhai Ambani Group (ADAG) topping the gainers list. These stocks were also the top volume fetchers, when the trading volume witnessed a jump of over 50% over previous few sessions.

Dealers said that with the UPA sailing through the trust vote with the help of the Samajwadi Party (SP), the latter is expected to dominate the political scene at the Centre. The SP is headed by Mulayam Singh and Amar Singh, both of whom are considered close to Anil Ambani. This political equation is expected to help the ADAG group in policy formulation in sectors in which it is operating. The gains and huge volume in the ADAG stocks were also because the ADAG stocks, like other pivotals, were in the oversold positions for the past few trading days and Wednesday saw huge short covering.

Arpit Agarwal, head-research, Arihant Capital Markets, said, “The ADAG stocks were performing better in the last few days, in the anticipation of rising dominance of SP at the Centre. The optimism was further strengthened by the fact that SP played crucial role in UPA winning the confidence vote. The short covering in these stocks also played vital role". Reliance Power, which made its debut this year gained Rs 28.20 or 19.75% and closed the day at Rs 170.95. Reliance Capital, another group stock added Rs 171.10 or 14.52% before closing at Rs 1,349. 40. While Reliance Communication gained Rs 57.10 or 12.20% closing at Rs 525.25. Adlab, RNRL and Reliance Infrastructure Ltd also made impressive gains on Wednesday.