Why are Reliance shares falling, will price of Mukesh Ambani company’s share increase after issue of bonus share?

Market experts are of the view that tension in the Middle East, rising oil prices, and opening of China’s economy with its easing rate policies, has diverted foreign institutional investors (FII) towards Chinese markets.

Stocks of Mukesh Ambani-led Reliance Industries witnessed a downturn in the last three consecutive days on Dalal Street. As per the latest report, the company’s shares closed at ₹2,771.50 on Friday. It showed a decline of 1.51%.

The similar trend was noted on October 3 as the stock declined 3.91 per cent to settle at Rs 2,815.25 on the BSE.

Market experts are of the view that tension in the Middle East, rising oil prices, and opening of China’s economy with its easing rate policies, has diverted foreign institutional investors (FII) towards Chinese markets.

Over the past five trading sessions, Indian stock markets experienced a sharp decline in investor wealth, with approximately Rs 13 lakh crore being wiped out, according to Bombay Stock Exchange (BSE) data.

On October 4, the company’s shares closed at ₹2,771.50 and reflected a decline of 1.51%. It brought down the market cap by Rs 34000 crore. In total, the company noted a total loss of  Rs 1.32 lakh crore over the last four days. 

The Reliance Board had approved a one-for-one issue of bonus shares on September 5. The board had also suggested enhancing authorised share capital to Rs 500 billion from Rs$150 billion.  

It is quite interesting that Reliance Industries had gone through similar trends in last year’s Navratri.  The company’s shares dipped long-term 200-DMA (Daily Moving Average) in 2024 and likewise it happened in 2023 Navratri when the stock had taken a plunge below 200-DMA. Later, the stock bounced back in October 2023. 




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