Reliance Industries’ stock price nosedived Thursday, wiping out ₹95,407 crore from its market value—the most significant one-day drop since June 2024. What was once a market darling now grapples with investor skepticism.
Shares plummeted 5.3% to close at ₹2,698, dragging down the Sensex by over 500 points. The energy-to-telecom behemoth’s decline overshadowed broader market gains in IT and banking sectors.
Crude oil volatility spearheaded the rout. Brent crude slipped below $75 per barrel on OPEC+ supply hike signals and weak Chinese economic data. Reliance’s refining margins, already compressed, face further erosion, prompting profit-taking.
Jio Platforms’ ARPU stagnation and retail segment slowdown fueled the fire. Recent store closures at Reliance Retail amid consumer spending curbs signal headwinds. ‘Diversification hasn’t fully insulated RIL from commodity cycles,’ opined Emkay Global analyst.
This event revives memories of past corrections. In June 2024, similar pressures led to a 6% weekly loss. Foreign institutional investors (FIIs), net sellers for three straight months, accelerated the unwind, offloading over ₹10,000 crore in RIL shares recently.
Promoter holding remains rock-solid at 49%, providing stability. Yet, with debt levels elevated post-major capex, any earnings miss could prolong the pain. Green energy pivot—boasting ₹75,000 crore investments—offers long-term hope, but near-term hurdles persist.
Traders eye support at ₹2,600; a breach could trigger further selling toward 200-day moving averages. For now, Reliance’s aura of invincibility shows cracks, reminding markets that even giants aren’t immune to macroeconomic storms.
