Institutional investors may not warm up to RNRL

Reliance Natural Resources (RNRL) shares soared 24% to close at Rs 108.35 on Monday, after the favourable court ruling in the gas

dispute with Reliance Industries (RIL).

However, market watchers said the stock will remain a trading bet, as the verdict is unlikely to change the general apathy of institutional investors towards the stock.

"ADAG currently does not have any gas-based power plant, which could make use of the gas. Further, the verdict would be challenged in the Supreme Court. Also, it is difficult to say what might come out of negotiations between the two brothers," said an analyst, requesting anonymity.

RNRL is engaged in the business of sourcing, supply and transportation of gas, coal and liquid fuels. It is actively pursuing business opportunities in the supply management of coal and natural gas.

However, the stock does not figure in the coverage universe of most brokerage houses.

Total trading volume in the stock was about 10.5 crore shares on Monday, against the two-week average quantity trading of 2.8 crore shares on the Bombay Stock Exchange (BSE). Among stock options, RNRL was the top-traded counter on the National Stock Exchange (NSE), with call options of 100 and 110 strikes for June seeing heavy activity.