New Delhi: Shares of the country's most valuable company Reliance Industries Limited fell heavily in early trade today and reached a 52-week low. It fell 3.63% to ₹1,156.00 on the BSE. This has led to a decline of about ₹56,000 crore in the company's market cap. Meanwhile, according to a Bloomberg report, Reliance New Energy Limited (RNEL) may have to pay a fine of more than $14 million for failing to set up a battery cell plant. The plant was part of Prime Minister Narendra Modi's effort to reduce import dependence under the PLI program.
Foreign Institutional Investors Selling Continues
Foreign institutional investors (FIIs) are continuously selling Indian stocks, which has led to a steady decline in the domestic market. In the last few weeks, foreign investors have withdrawn money from the Indian stock market due to concerns over:
- Tight monetary policies
- Geopolitical tensions
- A strong US dollar
Its effect has also been seen on Reliance shares. Reliance shares have fallen 23% in the last six months and are 28% below their highest level of ₹1,608.95.
Fall in Market Cap
Foreign investors have been continuous sellers of Indian stocks in recent months. This has put pressure on the shares of big companies like RIL. As a result, the company's market capitalization has declined, reflecting the selling sentiment prevailing in the Indian markets. Reliance's market cap now stands at ₹15,69,146.30 crore.
Experts say that stability in FII investment and macroeconomic indicators will be important for RIL's recovery in the coming weeks.
