Reliance Industries Ltd has wiped nearly $50 billion in market capitalization since its peak in July as the most valuable Indian firm struggling with weak earnings and an economic slowdown.
Shares of the refining-to-retail group, led by billionaire Mukesh Ambani, have soared this year alone, outperforming the benchmark NSE Nifty 50 index by the widest margin in nearly a decade. While India’s broader markets have come under pressure in recent months due to concerns over foreign trade and earnings growth, the nation’s key gauges are still among Asia’s best-performing major markets in 2024.
A major part of the recent fall in Reliance shares came after last month’s disappointing results. The firm’s earnings missed consensus estimates for the sixth straight quarter amid a muted demand environment for its core oil-to-chemicals business.
The company offered investors one free share each at its annual shareholders’ meeting in August, though it did not give any details on the much-awaited listing of its telecom and retail units. Its wireless services division Reliance Jio Infocomm Ltd lost customers that month following a tariff hike.
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