Reliance Shares Fall Over 4% To ₹1,295, Market Cap Drops Below ₹18 Lakh Crore Amid Oil War & Tax Concerns
· Free Press Journal
Mumbai: Reliance Industries shares dropped more than 4 percent on Monday due to strong selling pressure. The stock fell to around Rs 1,295 on the BSE. This made Reliance the biggest loser in the Nifty 50 index during the session.
Impact on Market Indices
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Since Reliance has a high weight in the Nifty 50 (about 8.87 percent), its fall pulled the index lower. The Nifty 50 slipped nearly 0.7 percent during the day. The decline also affected overall market sentiment.
Market Cap Takes a Hit
Due to the sharp fall in share price, Reliance’s market value dropped below Rs 18 lakh crore. It stood at around Rs 17.65 lakh crore, showing a significant loss in investor wealth.
Fuel Tax Overhaul Raises Big Questions For Reliance, SEZ Export Duty Clarity Becomes Key For Margins & Government RevenueWhy Is the Stock Falling?
One of the main reasons is the rising tension in the Middle East, especially the US-Iran conflict. This has disrupted crude oil supply through the Strait of Hormuz, pushing oil prices higher.
India depends heavily on oil imports, and higher crude prices increase costs for companies like Reliance, especially in refining and fuel businesses.
Government Export Duty Adds Pressure
Another key reason is the government’s decision to reintroduce export duties on diesel and aviation turbine fuel (ATF).
- Rs 21.50 per litre on diesel
- Rs 29.50 per litre on ATF
This move raised concerns that Reliance’s profit margins could be affected.
Rupee Slips 21 Paise To 91.29 Against Dollar Amid Surging Crude Prices & Middle East TensionsRelief from SEZ Refinery Rule
However, there is some relief. Reports say that these export taxes may not apply to Reliance’s SEZ refinery due to earlier court rulings. This is important because a large part of its production comes from this unit.
What Experts Say?
According to Citi Research, if SEZ output is exempt, the overall impact may be limited. High global fuel margins could balance out the tax effect.
Jefferies also said the duties may cap fuel margins at about $20 per barrel, but not fully damage earnings.
Recent Trend
Reliance shares have fallen more than 8 percent in the last two weeks. The current fall shows how global events and policy changes can quickly affect stock prices.
What It Means for Investors?
The situation remains uncertain due to global tensions. However, partial tax relief and strong business fundamentals may help Reliance stabilise over time.
Disclaimer: This article is for informational purposes only and based on available reports. It does not constitute investment advice. Investors should consult certified financial advisors before making any investment decisions or trading actions.