Shares of Reliance ADAG companies on Monday surged after an agreement was sealed with 90 per cent of the lenders to avoid selling any stock pledged by the promoters until September 30 in view of lower collateral cover or reduced margin due to the recent decline in share prices.
The shares of Reliance Infrastructure, Reliance Power and Reliance Capital jumped between 11.3 to 19.9 per cent. While Reliance Infrastructure (which surged nearly 19.88 per cent) posted the biggest intraday percentage gain since May 2009, Reliance Power saw its strongest intraday performance since January previous year.
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The group stocks have tanked heavily this year as of Friday’s close with Reliance Infrastructure and Reliance Power slumping 60 per cent while Reliance Capital fell 35.3 per cent.
The settlement comes against the backdrop of the group shares nosedived after reports of L&T Finance Holdings and certain entities of Edelweiss Group selling stock of the Reliance Group cos they held as collateral. The Reliance Group, however, termed the sale as ‘illegal and excessive.’
Meanwhile, the headline indices – Sensex and Nifty – extended losses in the afternoon trade, tracking mixed global cues. The Sensex is down 233 points to 35,575.23, while the Nifty is trading below the 10,650-mark.
Asian share markets bounced broadly on Monday as investors dared to hope for both progress at Sino-U.S. trade talks in Washington this week and more policy stimulus from major central banks.