Mumbai: Shares in Reliance Industries fell as much as 6.1 per cent after an Indian court directed it to supply gas to Reliance Natural Resources at lower than market prices.
Reliance Industries, which has the highest weightage in the main share index, was asked to supply 28 million metric cubic metres a day for 17 years at $2.34 million per metric British thermal unit, the lawyer for Reliance Natural said after the court ruling.
Shares in Reliance Natural soared as much as 23.4 per cent to 107.70 rupees.
"Reliance Industries will have to supply gas at a rate lower than the rate fixed by the government. They are going to incur a lower profit for that much amount," said D D Sharma, vice president at Anand Rathi Securities.
By 0616 GMT, Reliance Industries was trading 5.4 per cent lower at 2,228.95 rupees after hitting 2,213.55 rupees.
Reliance Industries is controlled by billionaire Mukesh Ambani while Reliance Natural Resources is headed by estranged younger brother Anil Ambani.
Comments
0 comment