GG News Bureau
Mumbai, 9th Nov. Reliance Industries Ltd. (RIL) has seen a significant market capitalization drop of nearly $50 billion since its peak in July, facing pressures from declining earnings and a slowdown in economic growth. The company’s shares, which span from refining to retail, have shown limited growth this year, underperforming the NSE Nifty 50 Index by the widest margin in almost a decade.
While Indian markets remain among Asia’s top performers in 2024, recent foreign selloffs and concerns over earnings growth have applied downward pressure. For Reliance, the bulk of the decline followed last month’s financial results, which marked the sixth consecutive quarter in which the company’s earnings fell short of analyst expectations. A weakening demand for Reliance’s core oils-to-chemicals sector has been a central issue, alongside disappointing subscriber numbers in its telecom unit, Reliance Jio Infocomm Ltd., which reported a loss of users following a recent tariff hike.
The company sought to bolster shareholder confidence in August by offering one free share per held share, though it did not announce the anticipated IPOs for its telecom and retail subsidiaries.
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