Reliance’s Market Cap Dips Below Rs 15 Lakh Crore, Shares Down 9% in 6-Days

Reliance Industries shares fell 9% in six sessions.

Shares of Reliance Industries (RIL) touched a 52-week low of Rs 2,207.35 in intraday trade on Thursday, down 1.3% on the BSE. Shares of India’s most valuable company fell for a sixth straight session, falling 9%.

RIL was quoted at its weakest level since March 8, 2022, when it touched a low of Rs 2,181 in intraday trade.

During today’s intraday session, the sharp fall in RIL’s share price has seen its market capitalisation drop below the Rs 15 lakh crore mark. The exchange data showed that RIL’s market capitalisation of Rs 14.94 lakh crore on the BSE as of 9:38 am.

On December 6, 2021, RIL’s market capitalisation closed at Rs 14.99 lakh crore. The company’s market capitalisation has fallen by Rs 4.12 lakh crore from its all-time high of Rs 19.07 lakh crore on April 28, 2022, according to CapitalinePlus data.

RIL has also underperformed the market over the past three months, falling 14% compared with a 7% drop in the S&P BSE Sensex.

Reliance Jio on Tuesday launched Jio Plus, a new set of postpaid family plans in which a family of four can try the service for free for a month. The plans, which start at Rs 399, have been launched ahead of the Indian Premier League (IPL), which kicks off on March 31. Viacom 18 powered by Reliance is entitled to the competition and will be free on the Jio Cinema app.

Jio’s growth in the postpaid space has been slow, and the move will put it in competition with Bharti Airtel, which has seen subscription growth in the space in recent months. Growth in postpaid subscribers and upgrade of 2G customers to 4G also helped Airtel boost average revenue per user, Business Standard reported.

The stock has been trending along the lower end of the Bollinger Band on the daily chart for the past four sessions. The same is currently at Rs 2,233. The stock needs to break out and sustain above this level to spark hopes of a rebound.

However, the overall trend remains negative for the stock as it is trading well below key moving averages. A pullback, if any, will likely meet stiff resistance around Rs 2,350, where it sits at the 20-day EMA.

As long as the stock trades below its 100-WMA (weekly moving average) of Rs 2,420, the medium-term trend will likely remain bearish.

On the downside, a break and a sustained break below Rs 2,185 could trigger a move towards levels above the two-year trendline support at Rs 1,910.

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