Major Blow to Ambani’s Reliance! Investors Lose ₹44,000 Crore in Stock Market
On the first trading day of the week, the shares of the company owned by India's richest person, Mukesh Ambani, witnessed a sharp decline in the stock market. Consequently, the company's market capitalization slipped below the ₹18 lakh crore mark.
Reliance Stock Market Loss: A significant downturn was evident in the stock market right from the morning today. However, the spotlight today was firmly fixed on Reliance—the country’s largest company by market capitalization. Immediately after the market opened in the morning, shares of Mukesh Ambani’s company plummeted. Subsequently, by the afternoon, the stock was trading with a decline of 4%. This sudden and substantial drop in Reliance’s share price had a direct impact on the company’s overall market valuation.
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Reliance Shares Decline
On Monday, Reliance shares opened at ₹1,349 and traded sideways at that level for a brief period. However, the stock then suddenly reversed course, and its initial sluggishness transformed into a steep decline. By the close of the market, Reliance shares had fallen by approximately 3.30%, settling at ₹1,306.
Loss of ₹44,000 Crore
The decline in the share price of Mukesh Ambani’s company has had a direct impact on its market capitalization as well. According to a report, Reliance’s market capitalization suddenly dropped to ₹17.56 lakh crore. As a result, investors suffered a loss of approximately ₹44,000 crore.
Despite this, Reliance shares had witnessed a significant rally at the beginning of the year; even after this recent decline, the stock’s one-year return remains at approximately 12%.
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The Iran Connection Behind the Decline
The decline in Reliance’s share price appears to be linked to the situation involving Iran. The ongoing conflict between the United States and Iran continues to escalate, a situation further exacerbated by recent threats issued by Donald Trump. The closure of the Strait of Hormuz due to the ongoing conflict has significantly heightened the pressure on oil companies. The situation has been further exacerbated by a surge in crude oil prices, which have now reached $110 per barrel.
Reliance the country’s largest company, which holds a dominant position across various sectors also maintains a substantial presence in the oil industry. It is reported that the rise in crude oil prices, coupled with persistent disruptions in supply, has had a major impact on the company’s shares.
Shares of Other Companies Decline
The tensions in the Strait of Hormuz and the escalation in crude oil prices have triggered a sharp decline not only in Reliance’s shares but also in those of other oil companies. Shares of Indian Oil Corporation (IOCL) fell by 2.50%, while shares of Bharat Petroleum Corporation, Hindustan Petroleum, and ONGC also dropped by approximately 2%.
