UP election results cause Anil Ambani's stocks to surge ; JP stocks go down

Discussion in 'Economy & Infrastructure' started by ashdoc, Mar 7, 2012.

  1. ashdoc

    ashdoc Senior Member Senior Member

    Jul 21, 2010
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    On a day when the stock markets were bleeding since opening and the benchmark BSE sensex fell by 260 points at 2.30 pm, and the NSE tumbled by 75 points; the stocks of Anil Ambani-promoted companies maintained their position in the green.

    Why? Anil is very close to the Samajwadi Party chief Mulayam Singh Yadav. Thanks to the pollsters’ predictions that Yadav would make it to the gaddi in Uttar Pradesh, the markets began rallying behind Anil Ambani’s companies.

    Around 2.30 pm, the Reliance Infrastructure scrip was trading at 664.00 – Rs 42.10 up or 6.71 per cent high). Reliance power was trading at Rs. 136.80 per share – or Rs. 7.70 paise more or 6.1 per cent up; Reliance Communications was selling at Rs. 97.90 paise(2.94 per cent higher). The Reliance Capital was trading at Rs. 433.50 (Rs 6.70 more or 1.51 per cent higher).

    At the same time, the stocks of JP Associates and other Jaiprakash group of companies were bleeding. Most of them, including JP Associates (down by Rs 70); JP Infra (down by Rs, 44 or 4 per cent) and JP Power (down by Rs 44 or 4 per cent) . This is because, the JP group is close to Mayawati whose prospect of retaining power is bleak.

    The stock market is directly reflecting the pollsters’ view on the possible outcome of the elections, exposing the politician-businessman nexus.

    Anil’s stocks surge, JP group takes beating : Postnoon

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