Friday, September 30, 2011

Anil Ambani group companies under selling pressure on stock market

Anil Ambani's Reliance Group has denied that the three executives, that have been charged in a multi-billion dollar telecoms scandal, had retracted their statements in a court case, according to Reuters.

Earlier, Press Trust of India, PTI had reported that the Central Bureau of Investigation (CBI) lawyer had informed the Supreme Court on Thursday, September 29, the three jailed executives had retracted their testimony.

According to their testimony they had taken full responsibility for decisions made by a unit of Reliance Communications.

The CBI were examining Anil Ambani's role in the telecoms licensing case, as per the PTI. However, Reuters has said, that a CBI Sleuth has informed that the agency is under the process of collecting evidence, it is not directly investigating Ambani.

Even though, the Reliance Group controlled by the Anil Ambani, ADAG, has said that there is no change in the stand by any of the Reliance executives and neither the Reliance Communications unit nor the founder group has benefited from telecoms licenses that were issued in January 2008.

But this has not helped the share prices of the companies controlled by the ADAG. Reliance Communication, Reliance Infrastructure, Reliance Power and Reliance Capital opened were under the bear attack as each of the company was down by approximately 5% or more. These companies were underperforming the broader market by a substantial margin.

The flagship company Reliance Capital will be most affected on the stock market.

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