Ambanis outperform Sensex

As equity markets inch ahead to regain the lost ground since late July, lady luck seems to be favouring the two Ambani brothers with most of their companies scaling new peaks in the past two days that took their collective market value above the pre-meltdown levels. While the market’s benchmark index BSE Sensex is still more than 250 points away from its all-time peak of 15,868.85 hit on July 24, after which the downslide began, the shares of the companies belonging to Mukesh and Anil Ambani groups — barring Reliance Communications and Reliance Industrial Infrastructure Ltd — are trading above their July 24 levels.
The cumulative market capitalisation of all these companies has soared well past the level recorded on July 24. Except for Reliance Communications and RIIL, all the Reliance shares — Reliance Industries, Reliance Petroleum and IPCL of Mukesh Ambani group and Reliance Capital, Reliance Energy and Reliance Natural Resources Ltd of Anil Ambani group — have reached their life-time highs in past two sessions. Reliance Capital has gained about 13 per cent in two days, while six others have gained about two per cent each.
The SC has allowed REL to bid for the Rs 2,600 crores Mumbai sea link project, while the government has approved RIL’s pricing formula for sale of KG gas. In the past two trading sessions, the investors’ wealth in these eight companies has increased by about Rs 13,500 crores, according to data available with the BSE. The collective market capitalisation of all the eight companies today soared to Rs 5,29,000 crores, representing a gain of nearly Rs 27,000 crores over the level recorded on July 24.