Business

Reliance Industries Faces Sharp Decline Amid Indian Market Rally: Analysis and Impact

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Shares of Mukesh Ambani-led Reliance Industries suffered a sharp decline as the Indian stock market rallied sharply. On September 30, the Sensex fell 1,100 points, impacting major companies including Reliance Industries. The company experienced a significant drop in its share price, resulting in a loss of around Rs 80,000 crore in market capitalization.

The downward trend continued as Reliance Industries saw its share price decline by 3% on October 1, with the Bombay Stock Exchange (BSE) registering a 3.35% decline. Subsequently, shares fell another 0.89% to Rs 2,927, leading to a market cap decrease to Rs 67,000 crore by Monday, with an additional loss of Rs 12,000 crore on Tuesday.

The fluctuations in Reliance’s share prices have stirred mixed reactions among investors, with many facing losses due to recent crashes. The broader Indian stock market also exhibited signs of stress, with the Sensex dropping over 1,000 points and the Nifty index down 300 points in early trade on Monday. Key sectors such as banking, auto, financial services, and real estate have been severely impacted.

Before this decline, Indian stock indices had been on an upward trajectory, hitting six consecutive session highs. However, profit booking appeared to pause towards the end of the week, leading to a slight decline in trading. This ongoing volatility poses challenges for investors and raises concerns about future market stability.

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