- Reliance Industries shares went down 9 percent which is 52 weeks low and Mukesh Ambani loses Rs. 1.11 Lakh Crore In 70 Days.
Reliance Industries shares were battered down as much as 9 percent in Thursday’s trading. The share prices made the cycle to a new 52-week low.
The stock fell 5.83 percent to Rs 1,086 at 12.32 pm. Throughout the day it hit a 52-week low of 1,049.50 Rs.
The scrip has dropped 28 percent in the current calendar year, making a $15.2 billion dent (Rs 1.11 lakh crore) in the same period in the fortune of Mukesh Ambani. The stock market decline has also had an effect on the properties of Mukesh Ambani. For that, in 70 days, there was a loss of around $15.20 billion (1.11 lakh crore) in its reserves.
Ambani’s head has also been taken away from the crown of Asia’s wealthiest. The crown of being Asia’s richest individual now belongs to Alibaba’s CEO Jack Ma. Aside from that, Jack Ma was ranked 18th in the Bloomberg Billionaires Index on the list of the richest people in the world on March 11, while Mukesh Ambani came in 19th.
Meanwhile, on Wednesday, the global brokerage UBS Securities maintained its’ buy’ rating on Reliance Industries and increased the stock’s target price to Rs 1,840, indicating a 60 percent raise over the current rate over the next 12 months.
The brokerage said this year’s sharp fall in stock price suggests that the energy sector is not being given any interest.
“We conclude that the recent downturn in stock prices gives investors an opportunity to buy the energy sector virtually free, as the current market cap is 10 percent below our consumer company SoTP (sum of parts) valuation,” the brokerage said in a statement.
Out of concerns about Covid-19 effects on demand for refined products and petrochemicals, declining margins, lower energy segment cash flows affecting RIL’s growth investments, and Saudi Aramco contract timelines, the brokerage said RIL’s stock price has declined 30 percent from the recent peaks.
Reliance shares closed Thursday at 1063, although they had touched 1048 during the trade. Reliance’s stock on 27 December 2019 stood at Rs 1537 on the last trading day of the year along with the stock at a 70-day interval. The price plummeted to 1063. The share price dropped by around 475 rs. The shares in Reliance have fallen by around 30 percent.