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Reliance Industries shares tumble most since 2024 on retail business, US worries
The 4.5% decline in Reliance Industries' share price erased more than $10 billion in market capitalisation of India's biggest company.
Shares of Reliance Industries Ltd.’s tumbled after analysts warned of rising competition in the retail sector, where the billionaire Mukesh Ambani-controlled conglomerate is a major player.
Shares of the oil-to-telecom major closed 4.5% lower on Tuesday, marking its worst day since June 2024. The selloff also weighed on the BSE Sensex and NSE Nifty 50 where Reliance has the second-biggest weighting, causing them to trail regional markets. The selloff erased more than $10 billion in market capitalisation for the country’s largest firm.
Reliance Retail — Catching Strays?
Fast-fashion rival Trent Ltd. on Monday reported a 15% decline in average revenue per square feet of store space in the December quarter from a year ago, indicating a tough environment for Indian retailers. Citigroup Inc. said that intense competition in the sector was eroding incumbents’ market share.
Reliance’s retail business is often seen as one of the biggest drivers of its share price, with ICICI Securities valuing the business at more than $103 billion in October—about half of the company’s $226 billion market cap. Although the retail unit is closely held, weak commentary around Trent was viewed by investors as a sector concern that could also hurt India’s largest retailer.
Reliance's Russian oil imports, or lack thereof
Stock traders are also concerned about how Reliance Industries will offset its supplies of Russian crude oil, which it secured at a discount following the Ukraine war in 2022.
On Tuesday evening, Reliance Industries said in an exchange filing that there was no link between recent moves in its share price and a Bloomberg News report on Russian oil cargoes, adding that it has not received any such shipments at its Jamnagar refinery in recent weeks.
Bloomberg News had earlier reported that the Russian oil cargoes previously linked to Reliance were discharged elsewhere.
Selling pressure increased as investors took profits in stocks that have rallied in recent months. Reliance shares jumped 29% in 2025, beating the benchmark NSE Nifty 50 Index’s 11% gain.
The outperformance was driven by improving prospects for the company’s energy business, supported by higher gross refining margins and potential benefits from China’s so-called anti-involution policy for the refining sector.
Growth catalysts for Reliance in 2026
Morgan Stanley sees several growth catalysts for Reliance in 2026, including the initial public offering of Jio Platforms Ltd., a likely increase in telecom rates and an upside to refining margins due to benign oil prices.
Still, uncertainties around US tariffs on India as well as the patchy recovery in consumer demand could continue to weigh on the stock. The shares also trade at more than 23 times forward earnings, more than one standard deviation above the five-year average, data compiled by Bloomberg showed.
“If India is to completely stop refining Russian oil, then it has wider impact on Reliance as well as Indian state companies and this uncertainty is also dragging on the stocks,” said Deven Choksey, managing director at DRChoksey FinServ.
