Reliance Shares Slide 3.5% Amid Weak Earnings And Market Pressure

Image Source : CNBC TV18

Shares of Reliance Industries Ltd (RELI.NS) extended their losing streak, falling 3.5 percent in the latest trading session, as investors reacted to subdued quarterly results and broader market volatility. The stock settled at ₹3,001.10 on the BSE, dragging down benchmark indices and eroding significant market value.

Key Factors Behind The Decline

- Reliance reported a 5 percent drop in net profit for the June quarter, driven by weaker margins in its oil-to-chemicals (O2C) segment.
- The company’s market capitalization fell by ₹73,470 crore in a single day, reflecting investor concerns over earnings softness and sectoral headwinds.
- Foreign institutional investors (FIIs) have continued to pare holdings, with ownership dropping from 23.6 percent in FY23 to 19.6 percent in Q3 FY25.
- Retail and telecom segments showed resilience, but failed to offset pressure from refining and petrochemical operations.

Market Sentiment And Recovery Prospects

- Analysts remain divided—some see the current valuation as overly bearish, citing potential upside from Jio’s tariff hikes and retail expansion.
- Others caution that persistent FII selling and global refining uncertainties may limit near-term recovery.
- The stock has lost 25 percent from its July 2024 peak, wiping out ₹5.4 lakh crore in investor wealth.

Investor Takeaway

While bargain hunters are stepping in, the path to recovery hinges on margin improvement in core businesses and strategic clarity on upcoming IPOs and spin-offs.

Sources: Economic Times, DNA India, Upstox, TimesNow, Mint.