Reliance Group Stocks Sink As AAP Wins Delhi Election

Business

oi-Sunil

By Sunil Fernandes

Updated: Tuesday, February 10, 2015, 14:25 [IST]

Shares in Reliance Industries fell sharply as Arvind Kejriwal's Aam Aadmi Party won the elections in Delhi by a whopping majority.

In the past Arvind Kejriwal had made allegations against policymakers over gas pricing and favours to Reliance Industries. The group had refuted these allegations. Dealers say the reaction to the Reliance Industries stock is more sentimental than anything else.

Shares in Reliance Industries was down a huge 3.65 per cent, while ADAG Group company Reliance Infrastructure fell 2.47 per cent at Rs 409 and Reliance Capital was down 2 per cent.

Last time he was the Chief minister Arvind Kejriwal had said that he may order an audit of power distribution companies. Reliance Infrastructure is a power distribution company in Delhi.

Meanwhile, the Sensex which was trading a whopping 300 points higher in trade until noon, gave up all gains and fell sharply as investors sold heavily into stocks after the AAP victory. AAP is not considered a very investor friendly party and worries that the huge loss in Delhi would force the government to resort to populist measures in the forthcoming Union Budget.

In fact, analysts warn that any populist measures in the Union Budget would see the markets fall in post the Union Budget.

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