06 May 2010

RIL, RNRL shares to remain in focus on Friday

RIL, RNRL shares to remain in focus on Friday


MUMBAI: Shares of Reliance Industries and Reliance Natural Resource Ltd (RNRL) will remain in focus tomorrow as the Supreme Court is likely to deliver its verdict on gas pricing and supply dispute between the two companies, say analysts.

Marketmen said Reliance Industries and RNRL stocks, which saw profit booking today, are likely to affect investor sentiment and the movement of the market tomorrow.

"The market is keenly awaiting the judgement of RIL-RNRL case and the verdict would have significant impact on investor sentiments. Both the stocks would be in the focus," Geojit BNP Paribas Financial Services Research Head Alex Mathews said.

"Once the decision is out it will be good for the market, whichever way the verdict goes, as it will remove the uncertainty," Purpleline Investment Advisors Director & CEO P K Agarwal said.

Shares of RIL today closed nearly one per cent down at Rs 1,010.90, while RNRL shares fell marginally to Rs 68.35 on the Bombay Stock Exchange.

"The Supreme Court's verdict would certainly have impact on the movement of the market. RIL, being a heavyweight stock, would guide the movement in the key indices," Bonanza Portfolio Assistant VP (Research-Equity) Avinash Gupta said.

The dispute between Reliance Industries and RNRL, the companies led by billionaire brothers Mukesh Ambani and Anil Ambani, is over supply of 28 million cubic meter of gas a day to RNRL by RIL.


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RNRL is seeking gas from RIL's KG-D6 gas fields at USD 2.34 per mmBtu, 44 per cent lower than the government set price, for its proposed 7,800 MW power plant at Dadri.

While, RIL's contention is that it cannot sell gas at a price less than USD 4.20 per mmBtu as set by the government and to customers other than those identified in accordance with the Gas Utilisation Policy (GUP).



SC judgement on RIL-RNRL gas dispute on Friday



NEW DELHI: The Supreme Court will deliver tomorrow its verdict on the gas pricing and supply dispute between energy companies RIL and RNRL. ( Watch )

A three-judge bench headed by Chief Justice K G Balakrishnan, who will be demitting office on May 11, had reserved its judgement in the lawsuit after arguments concluded on December 18.

The dispute between Reliance Industries (RIL) and Reliance Natural Resources Ltd (RNRL), the companies led by billionaire brothers Mukesh Ambani and Anil Ambani, is over supply of 28 million cubic meter of gas a day to RNRL by RIL.

RNRL is seeking gas from RIL's KG-D6 gas fields at $2.34 per mmBtu, 44 per cent lower than the government set price, for its proposed 7,800 MW power plant at Dadri.

RIL's contention is that it cannot sell gas at a price less than $4.20 per mmBtu as set by the government and to customers other than those identified in accordance with the Gas Utilisation Policy (GUP).


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The Bombay High Court had last year upheld RNRL's claim for gas as made out in a family agreement that split the Reliance business empire between the two brothers.

The Apex court heard the case for 26 days since October 20. It also witnessed the recusal of Justice R V Raveendran from the Bench after hearing the matter for six days on the ground that he held shares of both RIL and RNRL.




Src: Economictimes

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