Reliance Group Firms’ Shares Plunge 12 Per Cent

New Delhi, July 25: | Updated: Jul 26 2002, 05:30am hrs
Reliance Group companies have been on a downward journey on the bourses since the past two weeks, after they staged a brief rally following the demise of the Group’s patriarch Dhirubhai Ambani. While Reliance Petroleum plunged close to its 52-week low on Thursday, other Group companies have shed upto 12 per cent since July 10. Four of the Group majors have witnessed an erosion of Rs 4,082 crore in their market capitalisation in the past 11 trading days.

Group flagship company and Sensex heavyweight, Reliance Industries has shed 9.32 per cent since July 10 to close at Rs 251.55 on Thursday, resulting in a loss of 2,724 crore in investor wealth. The stock had closed at Rs 277.4 on July 10 and had touched a high of Rs 344 in January this year.

Mr Rajesh Gupta of Investsmart said: ‘‘Reliance stocks have been affected by the Group’s name figuring in the JPC report.’’ A JPC was set up to probe into the last year’s scam. Mr Gupta added that the market in general has been on a downtrend during the period, which has affected these counters.

RIL, Reliance Capital, Reliance Petro and Reliance Industrial Infrastructure have underperformed on the BSE Sensex, which has dips about 7 per cent during the period.

Mr Gagan Banga of Indiabulls attributed the slump in stock prices to the heavy selling by mutual funds. He said: ‘‘Selling pressure from Unit Trust of India (UTI) has been a major factor that has led to the decline in the prices of the Reliance Group stocks.’’

Reliance Petroleum has also declined by 9.86 % since July 10 and closed at Rs 22.4 on Thursday after touching Rs 22.35. During the period, the market capitalisation of the stock has been eroded by Rs 1,274 crore. The stock has been sliding since it scaled to Rs 32 in February 2002. Loss in Reliance Cap has been higher at 10.4%, while another Group company Reliance Ind Infrastructure has slipped 11.77 % during the period July 10-25. While the former closed at Rs 51.25 on Thursday, the latter ended the day at Rs 34.1 as against their close of Rs 57.2 and Rs 38.65 respectively on July 10.