The sharp plummet in Reliance’s shares came after the company reported weak earnings last month, failing to meet investors’ expectations for the sixth consecutive quarter.
It came as a major blow to Reliance Industries’ chairman Mukesh Ambani after the company witnessed a significant plunge in its market capitalization by nearly $50 billion (Rs 4219470000000).
Weak earnings and a sluggish economic climate have impacted the performance of the company’s stock. Reliance’s stock remained stagnant this year, especially underperforming the NSE Nifty 50 Index. It marked the company’s biggest slowdown in performance in the last decade.
Indian markets have faced pressure from foreign investors to sell off and lackluster earnings growth, yet the NSE Nifty 50 Index remains one of Asia’s top-performing major markets in 2024.
The sharp plummet in Reliance’s shares came after the company reported weak earnings last month, failing to meet investors’ expectations for the sixth consecutive quarter.
Reliance’s core business, from oil to chemicals, failed to attract demand, resulting in weak earnings.
During its annual shareholders’ meeting in August, the company sought to reassure investors by offering one free share for every share they held. However, no such announcements were made regarding its retail and telecommunications stocks, which investors are eagerly anticipating.