Reliance Share Price Hits 52-Week Low, Drags Indian Stock Market for Sixth Straight Session
Reliance Share : Reliance Industries Ltd (RIL) witnessed a sharp decline in its share price, hitting a fresh 52-week low on Wednesday. The stock plunged over 3% to ₹1,193.65 on the Bombay Stock Exchange (BSE), extending its losing streak for the fourth consecutive session. This downturn in Reliance’s stock significantly impacted the Indian stock market, contributing to its sixth straight session of decline.
Reliance Stock Under Selling Pressure
The stock has been under intense selling pressure, falling over 6% in the past week and more than 3% in a month. Over the past year, RIL shares have dropped over 17%, raising concerns among investors. On February 12, around 72 lakh Reliance shares were traded on stock exchanges, close to its one-week average trading volume of 93 lakh shares.
Impact on Indian Stock Market
Reliance Industries, being an index heavyweight, had a significant impact on the overall stock market. The benchmark indices—Sensex and Nifty—continued their downward trend due to the fall in Reliance shares.
- Sensex: The BSE Sensex plunged more than 800 points in morning trade on Wednesday, reflecting mixed global market cues.
- Nifty 50: The Nifty index slipped over 1%, dropping below the 22,900 mark.
The persistent selling in heavyweight stocks like Reliance contributed to the sharp market decline. As a result, the total market capitalization of BSE-listed companies decreased from ₹408.5 lakh crore in the previous session to approximately ₹400.5 lakh crore, wiping out ₹8 lakh crore in investor wealth in a single day.
What’s Causing the Fall in Reliance Shares?
The steep decline in Reliance stock can be attributed to multiple factors, including:
- Weak Broader Market Sentiment: Global stock market trends have been mixed, leading to volatility in the Indian market. The uncertainty in global economies and rising inflation concerns have weighed heavily on investor sentiment.
- Profit Booking: After a prolonged period of growth, investors might be booking profits, leading to heavy selling pressure.
- Sector-Wide Slowdown: The energy and telecom sectors have been experiencing sluggish growth, impacting companies like Reliance, which operate across these industries.
Should You Buy Reliance Shares After the Fall?
Many investors are now wondering whether this is the right time to buy Reliance shares at a discounted price. From a technical perspective, Reliance’s stock price is hovering around a crucial support level of ₹1,200.
According to Milan Vaishnav, CMT, MSTA, founder of Gemstone Equity Research & Advisory Services:
“The trend in Reliance Industries stock remains ‘neutral-to-bearish’. On the daily charts, RIL shares have a major pattern support at ₹1,200, which also coincides with the 200-week moving average. The stock’s movement around this level will determine its future trajectory.”
Investors are advised to closely monitor how the stock behaves at this critical support level before making any trading decisions.
Reliance Financial Ratios and Key Metrics
For investors considering Reliance Industries as a long-term bet, here are some key financial metrics to consider:
| Metric | Value |
|---|---|
| Market Capitalization | ₹16,35,454 Cr. |
| Current Price | ₹1,209 |
| 52-Week High/Low | ₹1,609 / ₹1,195 |
| Stock P/E Ratio | 23.6 |
| Book Value | ₹606 |
| Dividend Yield | 0.41% |
| Return on Capital Employed (ROCE) | 9.61% |
| Return on Equity (ROE) | 9.25% |
| Debt to Equity Ratio | 0.44 |
| Industry P/E | 20.1 |
| Total Debt | ₹3,57,525 Cr. |
| PEG Ratio | 1.97 |
| Intrinsic Value | ₹528 |
| Graham Number | ₹835 |
| Piotroski Score | 6.00 |
| Price to Book Value | 2.01 |
| No. of Equity Shares | 1,353 Cr. |
| Return on Invested Capital (ROIC) | 11.3% |
Outlook for Reliance Industries
Reliance Industries continues to be one of the most influential stocks in the Indian market. While the recent downturn has shaken investor confidence, the company’s diversified business model in oil & gas, telecom, and retail provides strong long-term growth potential.
However, investors must keep an eye on:
- Global market trends
- Crude oil price movements
- Reliance’s quarterly earnings reports
- Any significant announcements in the telecom and retail segments
For long-term investors, this correction could present an opportunity to accumulate Reliance shares at a lower valuation. However, short-term traders should exercise caution and wait for a trend reversal before making any moves.
Conclusion
Reliance Industries’ stock price hitting a 52-week low has significantly impacted the broader Indian stock market, extending its losing streak to six sessions. While the stock is currently under pressure, its performance around the ₹1,200 support level will be crucial in determining the next direction. Investors should analyze technical and fundamental factors before making any investment decisions.
Stay tuned for more updates on Reliance Industries and the Indian stock market. If you found this article helpful, share it with fellow investors!
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.