Reliance Industries' Shares Plummet 23% Since July Peak
Click to start listening
Mumbai, Dec 24 (NationPress) The shares of Reliance Industries Limited (RIL), recognized as India's largest corporation by market cap, have fallen by 23% from their peak recorded in July this year.
Should the stock not recover by 5% in the remaining five trading sessions of this year, the company will not only face its longest monthly losing streak since the Covid-19 market downturn but will also experience negative returns for the first time in a decade.
As per stock exchange reports, RIL's market capitalization has decreased by approximately Rs 5 lakh crore, dropping from a high of Rs 21.50 lakh crore in July to Rs 16.5 lakh crore.
In the meantime, Tata Consultancy Services (TCS), the premier IT firm in India under the Tata Group, along with HDFC Bank, the largest bank by market cap in the country, are rapidly closing in on RIL's leading position.
TCS's market capitalization has risen to Rs 15 lakh crore, up from Rs 13.72 lakh crore in January, positioning it closest to overtaking RIL.
HDFC Bank's market capitalization increased to Rs 13.74 lakh crore, up from Rs 12.95 lakh crore this year.
Both TCS and HDFC Bank have shown strong stock performance in 2024, with TCS gaining nearly 10% and HDFC Bank rising around 7% (based on the December 24 closing).
Investor sentiment towards TCS and HDFC Bank remains positive due to the global rate reduction cycle. Conversely, RIL's earnings have consistently fallen short of expectations.
Estimates for RIL's earnings per share for the upcoming year have dropped by 16% since the start of the current fiscal year.
Despite the downturn in Reliance Industries' earnings, analysts continue to maintain an optimistic outlook on the stock, with Morgan Stanley recently assigning an overweight rating to RIL.
