Why did Reliance shares fall over 4% today?
What's the story
Reliance Industries' share price has witnessed a steep decline of over 4% today. The fall has been attributed to heavy selling pressure, which has also affected the broader market indices. On the Bombay Stock Exchange (BSE), Reliance's shares fell as much as 4.13% to ₹1,295 apiece. Reliance also emerged as the biggest loser on the Nifty 50 index today.
Market impact
Reliance's market cap falls below ₹18 lakh crore
The sharp fall in Reliance's share price has also resulted in a major hit to its market capitalization. The company's market cap has now fallen below ₹18 lakh crore, according to exchange data. This decline comes as Reliance Industries holds the second-highest weightage in the Nifty 50 index at 8.87%, after HDFC Bank with a weight of 10.94%.
Price drop
US-Iran war, government export duties hit Reliance
The decline in Reliance's share price comes as the US-Iran war in the Middle East escalates. The conflict has disrupted crude oil supplies through the Strait of Hormuz, raising fears of possible oil shortages. Additionally, a government decision to impose export duties on diesel and aviation turbine fuel (ATF) has also contributed to concerns over potential pressure on Reliance's refining margins.