07 May 2010 Closing Market Updates

07 May 2010 Closing Market Updates  15:31


Today market opened gap down and traded in negative territory for the whole day.Nifty broke 5000 mark with more than Rs.1 Trillion turnover  and made a low of 4984.60 and closed at 5030, 60.85 points down and Sensex closed 199.10 points down at 16788.43
Reliance-RNRL Case :
The Supreme Court judgement on Friday ruled in favour of Reliance Industries in the RIL-RNRL Case that the government was the legal owner of the gas in the RIL-RNRL gas dispute and said Govt has right to decide price and utilization of fuel, which is a natural asset. The government contract overrides any private deal, the court ruled. Shares of Reliance


Industries surged while shares of Anil Ambani owned ADAG group tanked after the Supreme Court announced its verdict in the favour of Reliance Industries. RIL does not have absolute marketing right over gas; the price was subject to the government’s approval, the court said.
The court also said that natural gas resources cannot be subject to any family agreement and the family MoU signed by Mukesh and Anil Ambani and their mother Kokilaben was not legally and technically binding. Family agreement can only be a guiding factor about parties’ intention, it said.
Delivering the majority verdict of the bench headed by Chief Justice K G Balakrishnan on the four-year gas dispute between RIL and RNRL, Justice P Sathasivam said the Production Sharing Contract over-rides all other agreements.
The majority verdict judgement in the RIL-RNRL gas dispute case was delivered by Chief Justice K G Balakrishnan; Justice P Sathasivam reads out verdict. What the Supreme Court says : RIL does not have absolute marketing right over gas; price subject to government approval Family MoU not legally binding
Terms of production sharing contract will have over-riding effect Gas is government asset till it reaches consumer Supreme Court holds petition filed by RNRL before company court as maintainable, as court had sanctioned the original demerger scheme.
Among the BSE Indices,only Oil & Gas index closed in positive by 0.91%  as Reliance gained more than 3%.Realty was the top loser by 4.24%
Idea was the top gainer in Nifty50 stocks.It gained 3.27% and closed at 64.65 while Rpower closed by 9.09% and closed 139.95.
RNRL was the top loser on NSE, droped by 23.77%
Advance decline ratio was poor nearly to 1:8 as 148 stocks declined and 1173 stocks gained today on NSE.
Nifty closed down by 5 % and Sensex closed 4.5% in the week.