Reliance Industries Share Price Slumps Over 4%; Market Cap Dips Below ₹18 Lakh Crore

Reliance Industries Share Price Slumps Over 4%; Market Cap Dips Below ₹18 Lakh Crore​

Reliance Industries shares faced heavy selling pressure on Monday, declining over 4% and leading to a notable drop in its market capitalisation. According to exchange data, the company’s market cap fell below ₹18 lakh crore to approximately ₹17.65 lakh crore.

Reliance Leads Losses on Nifty 50​

Shares of Reliance Industries fell as much as 4.13% to ₹1,295 apiece on the BSE, making the Mukesh Ambani-led conglomerate the top loser on the Nifty 50 index. The sharp correction in the index heavyweight dragged broader market sentiment, with the Nifty 50 slipping as much as 0.7% during the session.

Reliance holds the second-highest weightage in the Nifty 50 at 8.87%, after HDFC Bank at 10.94%.

Factors Behind the Decline​

The recent drop in Reliance shares comes amid escalating geopolitical tensions in the Middle East, particularly the US-Iran conflict, which continues to threaten crude oil supply through the Strait of Hormuz. This has raised concerns about potential oil shortages and added pressure on energy-linked stocks.

Reliance shares have fallen over 8% in the past two weeks. The sell-off also reflects investor concerns following the government’s reimposition of export duties on diesel and aviation turbine fuel (ATF). Effective March 26, export duties of ₹21.50 per litre on diesel and ₹29.50 per litre on ATF were reintroduced, while petrol exports remain exempt. This coincided with a ₹10 per litre cut in excise duty on petrol and diesel.

A senior official clarified that the windfall export taxes on diesel and ATF will not apply to Reliance Industries’ SEZ refinery due to judicial rulings.

Analyst Insights​

Citi Research noted that in FY25, 75% of Reliance’s diesel production and 35% of its jet fuel production came from its SEZ refinery. Based on 2022 precedent, these volumes could be exempt from the export duty, mitigating the impact of the taxes. Citi highlighted that any applicable export taxes on non-SEZ volumes should be largely offset by elevated diesel and jet fuel cracks compared with pre-conflict levels.

Jefferies added that the reimposed export duties broadly cap diesel and ATF spreads at $20 per barrel for standalone refiners like Reliance.

Current Trading​

At 12:15 PM on Monday, Reliance shares were trading 3.88% lower at ₹1,298.50 apiece on the BSE, reflecting ongoing caution among investors amid geopolitical and regulatory pressures.