Reliance Industries Ltd (RIL) share closed below Rs 2,000 after six trading sessions as Amazon.com Inc asked Securities and Exchange Board of India (SEBI) to investigate Future Retail for insider trading as it seeks to prevent its business partner from becoming part of rival Reliance's empire. The US giant has been pressing the SEBI to review Reliance's August deal to buy retail, logistics and other assets from Future Group for $3.4 billion including debt.
On November 2, RIL share closed below Rs 2,000 after the Mukesh Ambani-led conglomerate announced Q2 earnings. The stock closed 8.62% or Rs 177 lower at Rs 1877 on BSE against previous close of Rs 2054. In today's trade, RIL share closed 4.20% or Rs 87.60 lower at Rs 1,996 against previous close of Rs 2084 on BSE. Stock has fallen after 5 days of consecutive gain. The large cap stock touched an intraday low of Rs 1979, down 5.06%.
The large cap share trades higher than 5 day and 200 day moving averages but lower than 20 day, 50 day and 100 day moving averages. The large cap share has gained 39.86% in one year and risen 31.89% since the beginning of this year. The share has lost 10.6% in a month.
Total 8.11 lakh shares changed hands amounting to turnover of Rs 164.70 crore. Market cap of the firm fell to Rs 13.50 lakh crore.
Amazon argues it had a 2019 agreement with Future which prevented the Indian group's retail assets from being sold to certain parties including Reliance Industries. The November 8 letter to SEBI alleges Future Retail disclosed to Reliance price sensitive details of an injunction granted by a Singapore arbitrator to block the deal.
The spat is being closely watched as a key test of whether Indian firms, courts and regulators will respect arbitration decisions made in accordance with overseas arbitration rules, and adds to headaches for Amazon in India which is also dealing with antitrust challenges.