Mumbai: Shares in Reliance Natural Resources (RNRL), controlled by billionaire Anil Ambani, jumped 6.3% on Wednesday on market hopes the company would receive a favourable verdict in a gas dispute.
The company is locked in a long-running legal battle with Reliance Industries Ltd (RIL), controlled by the world’s fourth-richest man and Anil’s estranged older brother Mukesh Ambani, over terms of a deal for RNRL to buy gas at below the price set by the government.
A verdict from the Supreme Court is expected before Chief Justice KG Balakrishnan -- who is part of a three-member bench that heard the case -- retires next month.
“There is speculation that RNRL could receive a favourable verdict, and that is driving the stock up,” a dealer at a local brokerage said. Several other dealers confirmed this sentiment, but did not say what prompted the speculation.
RNRL shares gained 6.34% to Rs66.25, their biggest one-day percentage gain in almost three months, while Reliance Industries shares dropped 4.2% to Rs1,017, their lowest close in more than 1-“ months.
The verdict could determine whether Reliance Industries, India’s biggest listed firm worth $78 billion, makes or loses billions of dollars through gas sales from its fields in the Krishna Godavari basin.
Reliance Natural shares are down 4.7% since the start of the year, while Reliance Industries stock has fallen 6.6% in the same period.