In a stunning market reversal, Reliance Industries Limited (RIL) saw its market capitalization plummet by a staggering ₹95,407 crore in a single trading session. This marks the steepest single-day decline for the stock since June 2024, sending shockwaves through India’s financial markets.
The benchmark Nifty 50 index fell over 1.2%, but Reliance bore the brunt of the sell-off, with its shares tumbling more than 5%. Closing at around ₹2,700 per share, the stock erased massive gains accumulated over recent months. Investors watched in dismay as the company’s valuation dipped below key psychological levels.
Several factors contributed to this dramatic fall. Global oil prices dipped sharply amid escalating trade tensions and softening demand forecasts from major economies. As India’s largest refiner and petrochemical producer, Reliance remains highly sensitive to crude price fluctuations. Domestically, concerns over slowing retail growth and competitive pressures in telecom added to the unease.
Analysts point to Reliance’s heavy exposure to cyclical sectors like energy and petrochemicals, which have been under pressure. ‘This correction was overdue after the stock’s parabolic run-up,’ noted a Mumbai-based fund manager. Jio’s subscriber growth, while impressive, faces intensifying competition from rivals like Bharti Airtel and Vodafone Idea.
Retail investors, who have piled into Reliance amid the bull market, now face paper losses exceeding ₹1 lakh crore collectively. The stock’s high valuation multiples—trading at over 25 times forward earnings—had long raised red flags among value investors.
Looking ahead, market watchers anticipate volatility as quarterly results approach. Mukesh Ambani’s conglomerate must demonstrate resilience in its diverse portfolio, from green energy initiatives to digital services. Will this be a temporary blip or the start of a prolonged downturn? Only time will tell, but Thursday’s carnage underscores the risks in India’s blue-chip darling.