Reliance shares surge after vote
Market boosting DreamWorks' would-be partnerNEW DELHI -- Shares of media companies owned by DreamWorks' would-be partner Reliance ADAG have surged since the Indian government's ruling coalition won a contentious, televised vote clearing the way for a nuclear energy treaty with the U.S.
Mumbai-based Reliance Anil Dhirubhai Ambani Group -- whose interests include power, telecommunications and finance -- also owns Reliance Big Entertainment, which is in talks to fund DreamWorks' exit from Paramount for a reported $550 million.
While RBE is not listed on its own, shares of Reliance ADAG's other companies listed on India's main bourse, recorded sharp jumps since the vote in Parliament on Tuesday.
On Wednesday, shares of ADAG-owned Adlabs Films, India's leading theatrical chain and film banner, jumped 16.66% to $12.66 and then on Thursday rose even more to close at $13.07.
The group's telecom unit, Reliance Communication, saw a 12.2% rise in its share price Wednesday before easing to close Thursday at $11.92.
"The current market optimism is a combination of various factors including the recent decrease in oil prices and, of course, political stability following the trust vote," Mumbai-based consulting firm A T Kearney India Partner Saurine Doshi said in an interview Thursday.
Fuelling the market's rise was a dramatic live telecast of the Indian Parliament's vote, which Tuesday reconfirmed the leadership of Prime Minister Manmohan Singh and, according to Mumbai-based ratings agency Audience Map, boosted news channel viewership.
The vote's telecast was punctuated by fiery speeches and an unprecedented dramatic turn in which three opposition party members flashed as much as $250,000 they had allegedly received as a bribe to vote with the leading coalition, the United Progressive Alliance