Thunderclap in Dalal Street: Reliance Industries’ market capitalization vaporized ₹95,407 crore in one fell swoop, scripting the biggest single-session erosion since June 2024. Investors reel from the velocity of this blue-chip bloodbath.
The stock skidded 5.1% to ₹2,705, on turnover surpassing ₹40,000 crore. Nifty Oil & Gas index tanked 3.8%, with RIL as chief anchor.
Cascade of triggers unfolded. OPEC+ hinted at output hikes, cratering WTI crude to $71. Refining crack spreads narrowed perilously, squeezing Reliance’s O2C profitability—the segment clocking ₹5 lakh crore revenue annually.
Digital and consumer arms stutter. Jio’s 5G capex burdens balance sheet amid tariff restraint. Reliance Retail grapples with inventory pile-up in apparel, electronics amid rural slowdown.
Expert dissection: ‘Overbought on momentum; correction purges froth,’ says Motilal Oswal strategist. FII outflows hit ₹25,000 crore YTD, targeting high-beta names like RIL.
Balance sheet scrutiny intensifies. Net debt at ₹1.7 lakh crore post-JioMart expansions demands scrutiny. Dividends yield paltry 0.4%, deterring income chasers.
Strategic horizon brightens with new energy thrust: Solar module output ramps at Jamnagar, hydrogen pilots advance. Yet, execution lags promise, per Bernstein research.
Technical rebound possible at oversold RSI levels. Options data screams caution—max pain at ₹2,700. Reliance’s DNA of reinvention faces pivotal test; Ambani’s next moves will shape narrative amid this valuation reset.