What is the news?
There has been a sharp decline in the shares of Reliance Industries Limited today (January 6). The stock fell nearly 5 per cent to an intraday low of Rs 1,497 on BSE. Due to this decline, the market valuation of the company decreased by about Rs 1 lakh crore in a single day. At the end of the trading day, the stock fell 4.42 per cent to close at Rs 1,507.70 on BSE and Rs 1,508.90 on NSE.
Market mood spoiled due to wrong report
The major reason for the fall in the stock was a media report, which claimed that Reliance’s Jamnagar Refinery was going to get three ships of crude oil from Russia. As soon as this news came out, uncertainty among investors increased. The market felt that this could increase international pressure on the company. Due to this apprehension, many investors started selling shares, due to which there was sudden pressure on prices.
The decline continued despite the company’s denial.
Reliance clarified that Jamnagar Refinery has not received any crude oil from Russia in the last three weeks and no such delivery is to be made in January also. The company declared the report completely wrong, but despite this the fall in the stock did not stop. Due to heavy selling, Reliance’s market cap declined by more than Rs 1 lakh crore in a single day, which shows an impact on investor confidence.
Impact of fears related to index and imports
The fall of Reliance shares also affected the Nifty 50 index and it went down by about 82 points. The company’s shares slipped below their 50-day moving average, indicating technical weakness. Along with this, the discussion of decreasing oil imports from Russia also increased the market’s concern. All these reasons together pushed Reliance’s stock towards huge losses in a day.
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