Shares in Anil Ambani promoted Reliance Communications surged as much as 15 per cent after the company inked Rs 1,200 crore-deal with Reliance Industries' 4G arm Reliance Jio Infocomm.
The agreement between the two companies is for sharing of RCom's nationwide optic fibre network, the company said in a statement. RCom will have reciprocal access to fibre infrastructure built by Reliance Jio Infocomm in future, RCom said.
The fibre sharing agreement is the first in comprehensive framework of intended business cooperation between the two companies, the statement said, indicating the two companies might be looking at other alliances going forward.
"It's a good sentimental upside, but if Rs 1,200 crore is all that we are looking at, it will not solve Rcom's problems," Phani Sekhar of Angel Broking told NDTV Profit.
RCom shares have been under selling pressure because of huge debts on the company's books.
It's good news for traders but there's no reason for investors to celebrate yet, Mr Sekhar said.
RCom shares closed 11 per cent higher at Rs 63.30 on the Bombay Stock Exchange, while Reliance Industries advanced 2 per cent to end at Rs 793.95.
Other shares of the Anil Ambani group also saw strong buying interest. Reliance Capital gained 4.3 per cent, Reliance Infra rose 3.8 per cent, while Reliance Power shares gained 4 per cent.
Meanwhile, the BSE Sensex rose for the fourth day in a row. The Sensex gained 176 points or 0.93 per cent to end above the 19,000 mark after two weeks. The Nifty advanced 44 points to 5,748.