Yesterday was yet another spectacular day for the Reliance group companies in terms of wealth creation, be it the Mukesh Ambani camp or Anil Dhirubhai Ambani Group (ADAG) companies. All the group companies have been doing extremely well over the past one-month and have added enormous wealth to their investors. Mukesh Ambani's Group Reliance Petroleum and Anil Ambani’s RNRL were the star performer in Friday's trade; they surged up 11% and 35% respectively.
On Friday evening the total market cap for Mukesh Ambani's Group stood at Rs 401,800 crore and ADAG stood at Rs 190,700 crore. If we consider the combined market cap then they added Rs 26238 crore in a single day compared with Thursday's close.
According to Dipan Mehta, Member of BSE & NSE, “ Reliance Group has captured the market’s imagination. There is a lot of froth in the market especially in these stocks so lot of day traders, speculators also trying to ride this particular trend and therefore we are seeing Reliance Group companies doing exceedingly well.”
He further added, “Over the last two-three months if it is one group, which has outperformed the market, it is the Reliance Group; both brothers and therefore any stock, which is in the group market seems to have taken fancy to that and we are seeing blowout volumes and stock price movements.”
“Not all of it is related to any perceptible change in the fundamentals of these companies, but it’s just that the PEs are getting rerated upwards and there is a lot of excitement and expectations from these group companies.”
In percentage terms in last one month Reliance Industrial Infrastructure has gained by 115%, RNRL 66%, Reliance Capital 47% and Reliance Petroleum 43%.
