Reliance Power!
Moneylife Digital Team 06 January 2012

The Ambani brothers wield so much clout not just in business and political arena but on the markets, as well. Today, wild “rumours” were spread that the Ambani siblings—Mukesh and Anil—would be patching up and the markets shot up in what would be characterised as a dull trading session

No, we are not talking about the Reliance Power Company. We are talking about how much power the Ambani family has. Today, wild “rumours” were spread that Mukesh Ambani of Reliance Group and Anil Ambani of the ADAG Group would be patching up and the markets shot up in what would be characterised as a dull trading session. The Sensex was hovering around at 15,755 at around 2.26 pm, before the rumour machine kicked in and propelled it up to 15,978, a rise of over 220 points within a span of just 16 minutes! That is a whopping 1.42% upside move in a short timeframe. People close to the family who knew of the “rumour” beforehand would have pocketed a tidy sum of money, at the expense of the small investor who had no idea of this move.

What does this finding tell us? Simple. The Ambani brothers wield so much clout not just in business and political arena but on the markets, as well. For instance, Mukesh Ambani had bailed out the TV18  Group, cleaned up its debt-ridden balance sheet, and effectively taken control of the media conglomerate. In this case, the rumour would have only helped the Anil Ambani group whose stocks shot up 5-7%. Immediately, thereafter denial came and the market slumped back.
Will the Securities & Exchange Board of India (SEBI) check who traded the most before the rumour spread like wildfire? Rumour-mongering has been an old trick of the Ambanis and this episode shows, very little has changed.

Comments
Nagesh Kini FCA
1 decade ago
If the so-called spat washing dirty linen in public was a sham so is this rapproachment!
Take it with not a pinch, but a bucket full of salt. It is only with an eye to pep up the sinking ADAG scrips.
Parmod Bhalla
1 decade ago
For last one year, these shares have been hammered at will by bears causing enormous losses to investors. Did you ask for SEBI investigation then? Do you ask for investigation when day after day, FIIs indulge in basket selling?
K B Patil
Replied to Parmod Bhalla comment 1 decade ago
Going by this logic, since nothing was done earlier, we should continue to keep quiet and let the markets go to hell.
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