Mumbai, December 24 (IANS). Shares of Reliance Industries Limited (RIL), the country’s largest company by market capitalization, have slipped 23 percent from their highest level in July.
If the stock fails to grow 5 per cent in the remaining five trading sessions through 2024, it will be the first time since the Covid-19 pandemic that RIL shares have fallen on a monthly basis for such a long period. Also, this will be the first time in the last 10 years that it will give negative returns.
Due to the continuous decline in the shares of RIL, it is in danger of losing the title of being the country’s largest private company.
According to stock exchange data, RIL’s market cap declined by nearly Rs 5 lakh crore to Rs 16.50 lakh crore from its high of Rs 21.50 lakh crore in July.
At the same time, Tata Consultancy Services (TCS), India’s largest IT company owned by the Tata Group, and HDFC Bank, the country’s largest bank by market capitalisation, are moving fast to oust RIL from the top position.
TCS’s market cap has increased from Rs 13.72 lakh crore in January this year to around Rs 15 lakh crore and it is the closest to displacing RIL from its top position.
The market cap of HDFC Bank increased from Rs 12.95 lakh crore to Rs 13.74 lakh crore this year.
Shares of both TCS and HDFC Bank performed well in 2024. As of December 24 closing, TCS has returned around 10 per cent this year and HDFC Bank has returned around 7 per cent.
Due to reduction in interest rates globally, investors remain optimistic about TCS and HDFC Bank. On the other hand, RIL’s earnings have consistently remained weaker than expected.
RIL’s earnings per share estimates for the next year have declined by 16 percent since the beginning of the current financial year.
Despite the decline in Reliance Industries’ earnings, brokerages remain bullish on the stock. Recently Morgan Stanley has given overweight rating on the stock.
–IANS
ABS/CBT
