The truce effect — the start of negotiations by Mukesh and Anil Ambani saw their stocks buoyant and outperform the Sensex which was up less than one per cent on Monday.
The stocks of the Anil Ambani group soared as they were hit the hardest after the Supreme Court judgement that went in favour of RIL.
RNRL was up 22 per cent while Reliance Power was up 7.86 per cent and Reliance Infra up 6.2 per cent. The market view was that RIL could either take over RNRL which would be just a shell company if the group does not get the gas at a price that it wants.
RIL which has a transport division could benefit if it takes over or has a stake in RNRL. Reliance Industries stock was up 2.72 per cent but its infrastructure company Reliance Industries Infrastructure Ltd was up 11.4 per cent.
Goldman Sachs said that RIL could seek growth opportunities in new sectors within India to help it deploy more than $18 billion of free cash flows over FY11E-FY14E. It also didn't rule out the two group working together to exploit the synergies in their sector. HSBC Research indicated that RIL may seek either coal for thermal or uranium for nuclear power if it wants to get into the power sector.
This may require RIL to look outside India, as it feels it would be a diversion from its oil and gas business which would be negative for it in the long run.