Reliance Shares Hit Nine-month Low, Decline 4% Amid Heavy Selling

Reliance Industries' share price plunged by 4 per cent on Monday, reaching a nine-month low under strong selling pressure, and marking negative Year-To-Date (YTD) returns. During intraday trading on the BSE, Reliance shares dropped by as much as 4.03 per cent, touching Rs 1,285.10 per share. This decline slashed the conglomerate’s market capitalisation to roughly Rs 17.40 Lakh Crore, down over 20 per cent from its 52-week high of Rs 1,608.95 per share, adjusted for a 1:1 bonus issued on 8 July.

As of 4 November, Reliance’s YTD performance dipped by 0.5 per cent, though it has delivered an 11 per cent gain over the past year. Monday’s market saw widespread losses across the Indian stock exchanges, with Sensex and Nifty 50 dropping over 1.5 per cent each. All sectoral indices suffered, led by losses in Oil & Gas, Metals, Auto, and Banking sectors.

Reliance, owned by Mukesh Ambani, recently reported a 4.77 per cent decline in consolidated net profit for Q2 FY25, recording Rs 16,563 Crore, compared to Rs 17,394 Crore for the same period last year. The company’s total income rose slightly by 0.65 per cent to Rs 2,40,357 Crore year-on-year, while consolidated EBITDA dropped 2 per cent to Rs 43,934 Crore, with EBITDA margins slipping to 17 per cent from last year’s 17.5 per cent.

Following the Q2 results, HDFC Securities maintained an ‘ADD’ rating on Reliance, citing expected growth in the O2C segment, a robust digital business driven by increasing Average Revenue Per User (ARPU) and new subscribers, and the potential for unlocking value in the digital and retail businesses.