From a high of Rs 908 seen on Dec 23, the Reliance share has fallen to Rs 807 currently on the National Stock Exchange. During the time there have been allegations by the Aam Aadmi Party (AAP) on the Reliance Group all along from money laundering to gas pricing.
Actually, the stock should have been trading higher simply because the results were good, the company had a successful 2G auction and the company's retail business is expanding like never before.
It seems that the frequent allegations by the AAP is ensuring that the share price stays lower. Take the case today. The stock is down 0.50 per cent, even as the Sensex is up 0.50 per cent. There are reports in a business newspaper that AAP has now accused Reliance of Money Laundering. Perhaps, this is one reason the stock has drifted lower. How can the stock keep trading lower, when the benchmark indices are trading higher.
Last week the Aam Aadmi Party filed a First Information Report against Reliance Industries and ministers in the UPA government on allegations that they jointly rigged the prices of gas. The entire week the stock drifted lower.
Reliance has clarified in press releases on a number of occasions, but, that has not lifted sentiments for the stock.
Not sure when the allegations from AAP and the clarifications from Reliance would end. Until then, shareholders may not have too much respite.
And, if the AAP gets a decent number of MPs elected in the forthcoming General Elections, the party is likely to put severe pressure on the next government with regards to Reliance. Let's wait and watch.