Reliance Industries Stock Falls 23% From Highest Level in July 2024, Records Longest Losing Streak Since COVID-19 Market Slump
Reliance Industries' stock falls 23% from its highest level in July 2024, marking its longest losing streak since the COVID-19 market slump.
Mumbai, December 24: The stock of Reliance Industries Limited (RIL), India's largest company by market capitalisation, has slipped by 23 per cent from its highest level in July this year. If the stock fails to rise 5 per cent in the remaining five trading sessions this calendar year, the company will not only record its longest monthly losing streak since the Covid-19 markets' slump but also give negative returns for the first time in the last 10 years.
According to stock exchange data, RIL's market cap declined by about Rs 5 lakh crore from its peak of Rs 21.50 lakh crore in July to Rs 16.5 lakh crore. Meanwhile, Tata Consultancy Services (TCS), India's largest IT company owned by the Tata Group, as well as the country's largest bank by market capitalisation, HDFC Bank, are quickly catching up to dethrone the conglomerate from its top spot. Stock Market Today: Indian Share Market Ends Flat Ahead of Christmas, Sensex Settles at 78,472, Nifty Ended at 23,727.
TCS' market cap surged to Rs 15 lakh crore from Rs 13.72 lakh crore in January this year, and is closest to dethroning RIL from its top spot. HDFC Bank's market cap increased to Rs 13.74 lakh crore from Rs 12.95 lakh crore this year. Both TCS and HDFC Bank stocks performed well in 2024. TCS railed nearly 10 per cent and HDFC Bank surged around 7 per cent (as per the December 24 closing). Investors remain optimistic about TCS and HDFC Bank due to the global rate cut cycle. Indian Startup Ecosystem Raises More Than INR 29,200 Crore From Stock Market in 2024, Sees Record 13 IPOs.
On the other hand, RIL's earnings have consistently remained weaker than estimates. RIL's earnings per share estimates for the next year have fallen by 16 per cent since the beginning of the current financial year. Despite the decline in Reliance Industries' earnings, brokerages remain bullish on the stock. Recently, Morgan Stanley gave an overweight rating to RIL.
(The above story first appeared on LatestLY on Dec 24, 2024 06:59 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).