Reliance Industries Ltd has erased almost $50 billion in market capitalization since its peak in July as the most valuable Indian firm struggles with weakening earnings and an economic slowdown.
Shares of the refining-to-retail conglomerate led by billionaire Mukesh Ambani have barely risen this year, trailing the benchmark NSE Nifty 50 Index by the widest margin in roughly a decade. While broader Indian markets have come under pressure in recent months due to a foreign selloff and earnings growth concerns, the nation’s key gauges are still among Asia’s best performing major markets in 2024.
-
Also read: Reliance Ind Q2 net dips 4.8% as ‘slow’ O2C offsets digital rise
The bulk of the recent drop in Reliance’s shares follows disappointing results last month. The firm’s earnings missed consensus estimates for the sixth straight quarter amid a muted demand environment for its key oils-to-chemicals business.
The company offered investors one free share for each held at its annual shareholders’ meeting in August, though it gave no details on the much-awaited listings of its telecom and retail units. Its wireless service division Reliance Jio Infocomm Ltd lost subscribers that month after a tariff hike.
More stories like this are available on bloomberg.com
