Mukesh Ambani's Reliance Industries Faces Major Slump: Here's Why

Is Reliance Industries losing its shine?

Reliance has seen its market value drop by nearly 50 billion dollars or 4.2 lakh crore rupees since July.

So, what's behind the slump?

The company, led by billionaire Mukesh Ambani, has barely moved this year, underperforming the NSE Nifty 50 Index by the widest margin in a decade.

Over the past month, Reliance has seen a decline of approximately 8%What’s going on?The steep drop in Reliance’s stock follows disappointing results last month. For the sixth straight quarter, the company missed earnings expectations.

Meanwhile, Reliance has also adjusted its 1:1 bonus shares issue into its stock price. On November 1, 2024, the company allotted 677 crore equity shares as a bonus issue.

Another factor contributing to the stock's weakness is the upcoming adjustments in the MSCI Global Standard index, which will lead to an estimated outflow of $198 million from Reliance's market cap.

However, this adjustment is part of a broader rebalancing that affects multiple stocks, including ICICI Bank and Infosys.

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