RIL shares drop 7% in four sessions to hit 52-week low; what’s fuelling sell-off in India’s largest company?

Shares of Reliance Industries Ltd (RIL), the country’s most valued stock, have been under stress for the last four sessions and lost nearly 7% of its market value to touch its 52-week low today. The sell-off in Reliance share price was in sync with benchmark indices BSE Sensex and NSE Nifty, which corrected over 2% during the same period amid foreign institutional investor outflows, weak earnings, and global trade war concerns.

Continuing its losing streak for the fourth straight session, RIL share price dropped as much as 3.3% to hit a 52-week low of ₹1,193.65 in intraday trade. Early today, Reliance shares opened 1.2% lower at ₹1,219.95, after ending 1.5% lower in the previous session. The oil and gas heavyweight has fallen nearly 26% from its 52-week high of ₹1,608.95 touched on July 8, 2024. At the time of reporting, Reliance Industries shares were trading 1.75% lower at ₹1,213, with a market capitalisation of ₹16.42 lakh crore.  

RIL shares have underperformed benchmark index Sensex in terms of returns in the last six months and one year. RIL shares have seen a correction of 17% in six months as compares to 4.4% drop in Sensex during the same period. In the last one year, the blue-chip stock lost over 16% as against 7% rise in the BSE benchmark index. The oil-to-telecom conglomerate has fallen 0.5% in the calendar year 2025, and nearly 2% in a month, while Sensex declined nearly 3% and 0.2%, respectively, during the said period.

For the first time in a decade, billionaire Mukesh Ambani-led firm delivered negative returns to its shareholders in a calendar year, with its stock price falling 6.3% in 2024 after delivering 11.8% return in 2023. The last time RIL ended the year on a negative note was in 2014, settling with a marginal loss of 0.45%.

What’s fuelling sell-off in Mukesh Ambani-led company?

The current underperformance in RIL shares can be attributed to weak broader market, global headwind, including rising interest rates and trade policies, and sustained fund outflows by foreign institutional investors. Adding to it, uncertainty on listing of telecom & retail businesses and lack of clarity on new energy venture also kept investors sidelined.

RIL reported decent earnings in December quarter of FY25 after two muted quarters amid recovery in oil-to-chemicals (O2C) and healthy growth in retail led by festive as well as streamlining. Post Q3 results, most brokerages remained bullish on RIL shares amid attractive valuations, saying that O2C expansion and new energy to drive next leg of growth.

The company posted 7.7% YoY growth in its consolidated revenue at ₹2,67,186 crore in Q3 FY25, while consolidated EBITDA increased by 7.8% YoY to a record high of ₹48,003 crore. The consolidated profit increased by 11.7% YoY to ₹21,930 crore. As of December 31, 2024, the consolidated net debt stood at ₹115,465 crore, marginally lower against ₹1,19,372 crore in the year ago period.

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