Shares in Anil Ambani group of companies have fallen sharply

Shares in the Anil Ambani group of companies have fallen sharply amid a broad sell off across equities. Reliance Power, Reliance Communications, Reliance Infra, Reliance Capital and Reliance Media have together lost a whopping over Rs. 10,000 crore in market capitalization since March 14, 2013.

All these stocks have fallen for five straight days and are on course to register their sixth day of losses. These stocks have underperformed the broader Sensex, which has fallen to a four-month low and the Nifty, which is trading below its long term support levels.

Most of the Anil Ambani group stocks are considered high beta by analysts. High beta stocks outperform the broader indices in a rising market but fall more steeply than them in a falling market. So, while the broader Sensex has fallen 3.5 per cent over the last week, shares in the Anil Ambani group have crashed 15-20 per cent over the same period.
Reliance Communications The stock has fallen 19 per cent in the last week. Reliance Communications failed to rebound. The huge debt on RCom’s books continues to weigh on the stock, which is trading near its 52-week low.

Reliance Power: The stock has fallen 16 per cent over the last week and has hit a new 52-week low.

Reliance Infra: Infra stocks have been under pressure tracking sluggish growth in the Indian economy. The stock has fallen 18 per cent over the last week and hit a 52-week low.

Reliance Capital: The stock gained on hopes of a banking licence after the Reserve Bank put out new guidelines last month, but since then selling pressure has set in. The stock has fallen 16 per cent over the last week.

Source – NDTV Profit