Star performer of the day: Anil Ambani's group stocks

Anil Ambani's stocks have been the star performers today in one of the biggest rallies for Sensex. Stocks have clocked double digit return in terms of percentage for investors. With UPA crossing the hurdle of trust vote, bulls have outprformed bears for last 5 trading sessions. However, this victory has not come for UPA as effortless as expected.

After Left pulling out their support to UPA on Nuke deal it was Amar Singh's Samajwadi Party who came to the rescue. Number’s game pendulum shifted in favour of UPA thanks to Amar Singh's support of 35 MP's. Amar Singh has been in the news for past few weeks foe demanding windfall profit tax on oil exploring companies, extra charges for additional spectrum allocation to GSM players above 6.5 GHz & asking PM to intervene in Ambani brothers feud. It clearly suggests that Amar Singh favours younger brother of the two siblings of Dhirubhai Ambani.

With UPA winning the trust vote with better margins, markets anticipate that Anil Ambani group will get a share of pie from UPA in return of Amar Singh's contribution to their victory. One can expect some reforms going in favour of Anil Ambani's group stocks. Bombay High Court will hear Reliance Industries-RNRL KG basin case daily from Thursday. Ambani brothers feud over gas supply has been one of the catalyst for the bitter relationships between the two.

By Riken Mehta