Mukesh (left) and Anil have markedly different personalities

A long-running row between the Ambani brothers, who control the company, came to an end on Saturday when they agreed to divide the business between them.

Reliance Industries' shares rose 6% on Monday, pushing the Bombay stock market to a record close of 6,984.55.

The feud for control of India's largest private firm, which has sales of 870bn rupees ($23bn), erupted in November.

Market euphoria

Relief at the dispute's conclusion briefly pushed shares above the 7,000 mark on Monday.

They eventually closed up 1.1% above the previous high reached in March.

There is a bit of euphoria because of the Reliance Group settlement Sharmila Joshi, Asit Mehta Investment

The Ambanis own about one-third of Reliance, which is worth about 12% of the Bombay Stock Exchange.

The settlement will see elder brother, Mukesh Ambani, control the petrol and petrochemicals business while Anil Ambani will oversee telecoms and electricity.

"There is a bit of euphoria because of the Reliance Group settlement," Sharmila Joshi, an analyst with Asit Mehta Investment Intermediaries, told Reuters.

The mother of India's most powerful business family announced the agreement between the Ambani brothers on Saturday.

Amicable resolution

"I have today amicably resolved the issues between my two sons, Mukesh and Anil, keeping in mind the proud legacy of my husband, Dhirubhai Ambani," Kokilaben Ambani said.

The Bombay stock market briefly rose above 7,000

"I am confident that both Mukesh and Anil will resolutely uphold the values of their father and work toward protecting and enhancing value for over three million shareholders of the Reliance Group," she added.

Dhirubhai Ambani died intestate in July 2002, leaving the brothers to battle for control of a massive conglomerate that spans numerous industrial sectors.

Despite the feud, Reliance Industries in April reported a 47% rise in annual net profit to more than 75bn rupees ($1.7bn; �900m), mainly thanks to the core oil business.