The anxiety among investors over the outcome of the bitter battle between Mukesh Ambani-led RIL and his younger brother Anil Ambani group on gas came to an end on Friday, with the Supreme Court ruling that the government had the last word.
Although the judgement led to sharp movements upward in the case of RIL and downward in case of Anil Ambani group firms, analysts said the development would help remove uncertainties that have been plaguing these shares for long.
While investors in RIL cheered the judgement, shareholders of Anil Ambani group firms were disappointed and the same was reflected in the prices of shares of ADAG firms -- RNRL, Reliance Infra and RPower.
"The Supreme Court's verdict is good from market point of view, as the uncertainties will now be over and investors can value the scrips better," Bonanza Portfolio's assistant vice president (research-equity) Avinash Gupta said.
"Post verdict, RNRL shares fell significantly and for a while the scrip will be under pressure," he added.
Echoing similar sentiment, Purpleline Investment Advisors CEO P K Agarwal said, "Market is positive about the verdict as it has ended the uncertainty. RIL stock which was under pressure from past so many days has now bounced back after the verdict."
The benchmark index Sensex was trading down at 16,760, down 230 points at 1437 hrs.
The shares of Reliance Industries (RIL) were trading up three per cent at Rs 1,041 on the Bombay Stock Exchange, while Reliance Natural Resource Ltd (RNRL) was quoted down 22 per cent at Rs 53.25 in the afternoon trade.
"RIL stock was an under performer in the past few days it can see an upswing of about 10-15 per cent now, RNRL shares has already seen the correction today and will remain under pressure for a while," CNI Research chairman Kishor P Ostwal said.
The three-judge bench of the Supreme Court headed by Chief Justice K G Balakrishnan said the Ambani family MoU dividing KG-D6 gas between the brothers' group firms was not binding, both legally as well as technically.
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