Probe news hits ADAG stocks

Stocks of the Anil Dhirubhai Ambani Group companies dipped on the bourses on Wednesday on reports that the Enforcement Directorate is pursuing a case related to withdrawals of money from foreign bank accounts by Reliance Infrastructure and Reliance Energy. Investors might be fearful of the outcome of these investigations and exiting the stocks, said the head of research of a Mumbai-based broking firm. These reports only added to the negative sentiment that had set in on reports that the Government is probing possible under-reporting of revenues by Reliance Communications and is seeking an audit into the same. The stocks of Reliance Natural Resources fell by more than 16 per cent on Wednesday. While the stock touched an intra-day high of Rs 58.90, it plunged to a low of Rs 47.65, before closing at Rs. 48.25. Reliance Infrastructure slumped by almost 14 per cent during the day. The stock touched a high of Rs 649 while its day’s low was Rs 535. Reliance Communications was down by more than 13 per cent; it fell to a day’s low of Rs 199.35 from the day’s high of Rs 239, which was its opening price. There was substantial selling pressure on both Reliance Communications and RNRL; in the former the selling pressure was quite severe, said Mr Hitesh Agrawal, Head of Research, Angle Broking. News of the ED probe prompted people to sell ADAG stocks in both the cash and the derivatives markets, said Mr Alex Mathew, Head of Research at Geojit Financial Services.