RIL shares slide 19% from 52-week high; should investors buy the dip?
Reliance Industries: The stock has declined 19.02 per cent from its one-year high of Rs 1,611.20, touched earlier this year on January 5.
- Apr 8, 2026,
- Updated Apr 8, 2026 9:11 AM IST
Shares of Reliance Industries Ltd (RIL) settled almost on a flat note on Monday, shedding just 0.01 per cent to close at Rs 1,304.65. At this level, the stock has declined 19.02 per cent from its one-year high of Rs 1,611.20, touched earlier this year on January 5.
Despite the correction, some market experts believe the company's long-term fundamentals remain intact, suggesting that investors may consider accumulating the stock on dips, particularly ahead of the potential value unlocking from Jio Platforms.
Kranthi Bathini, Equity Strategist at WealthMills Securities, said, "Given the kind of sum-of-the-parts business value Reliance Industries has, the company still offers embedded value for long-term investors. We also have news regarding value unlocking from Jio. Jio (Platforms) listing may come in the coming quarters, but the date is not clear yet. They may wait for market stability before going for the Jio listing. It might take some time, but market stability is needed."
He added, "So in that context and perspective, one can start adding Reliance Industries on dips."
Deven Choksey, Managing Director at DRChoksey FinServ Pvt, also maintained that the fundamentals of the conglomerate remain strong. "I don't see anything wrong with the fundamentals. Yes, to a certain extent, you might have a little adversity in the raw material prices and the resulting impact. That is from the oil-to-chemical business, but you can't generalise it across the board for all the products of Reliance. I don't think that Jio Platforms or the retail segments are facing anything adverse. So from that perspective, the stock remains pretty okay," he noted.
Choksey added that foreign portfolio investors' (FPIs) reduced holdings also played a role. "I have been studying the data, both in the derivative market and in the cash market. In the last one and a half years, FPI holdings in the cash market have come down by around 2 per cent, which is close to Rs 30,000-40,000 crore worth of market cap if one takes an average price of Rs 1,400 during this period."
"Subsequently, a slight recovery has taken place as Indian mutual funds have bought the stake that FPIs sold to a greater extent. So the stock has remained stable," he said.
Highlighting the reason behind the drop, Choksey pointed to derivative markets. "The villain in the pack is the derivative market. If you see the derivative market data for the same period, there has been constant hammering of the stock. Short sellers have probably made maximum gains, largely because their view was that the rupee would fall and the stock price would decline. Those who shorted and recovered made a fantastic killing, but that has actually caused the price damage."
The expert also noted, "The fall in the market seems to be partly due to repayment of collateral that investors may have incurred, or due to the margin requirements -- particularly the cash margin in the derivative market, which came into force in April. This may have led to some part of the proprietary trade getting unwinded."
Choksey concluded, "Nothing fundamentally wrong. Maybe the technical factors of the market have taken a toll on the stock."
Shares of Reliance Industries Ltd (RIL) settled almost on a flat note on Monday, shedding just 0.01 per cent to close at Rs 1,304.65. At this level, the stock has declined 19.02 per cent from its one-year high of Rs 1,611.20, touched earlier this year on January 5.
Despite the correction, some market experts believe the company's long-term fundamentals remain intact, suggesting that investors may consider accumulating the stock on dips, particularly ahead of the potential value unlocking from Jio Platforms.
Kranthi Bathini, Equity Strategist at WealthMills Securities, said, "Given the kind of sum-of-the-parts business value Reliance Industries has, the company still offers embedded value for long-term investors. We also have news regarding value unlocking from Jio. Jio (Platforms) listing may come in the coming quarters, but the date is not clear yet. They may wait for market stability before going for the Jio listing. It might take some time, but market stability is needed."
He added, "So in that context and perspective, one can start adding Reliance Industries on dips."
Deven Choksey, Managing Director at DRChoksey FinServ Pvt, also maintained that the fundamentals of the conglomerate remain strong. "I don't see anything wrong with the fundamentals. Yes, to a certain extent, you might have a little adversity in the raw material prices and the resulting impact. That is from the oil-to-chemical business, but you can't generalise it across the board for all the products of Reliance. I don't think that Jio Platforms or the retail segments are facing anything adverse. So from that perspective, the stock remains pretty okay," he noted.
Choksey added that foreign portfolio investors' (FPIs) reduced holdings also played a role. "I have been studying the data, both in the derivative market and in the cash market. In the last one and a half years, FPI holdings in the cash market have come down by around 2 per cent, which is close to Rs 30,000-40,000 crore worth of market cap if one takes an average price of Rs 1,400 during this period."
"Subsequently, a slight recovery has taken place as Indian mutual funds have bought the stake that FPIs sold to a greater extent. So the stock has remained stable," he said.
Highlighting the reason behind the drop, Choksey pointed to derivative markets. "The villain in the pack is the derivative market. If you see the derivative market data for the same period, there has been constant hammering of the stock. Short sellers have probably made maximum gains, largely because their view was that the rupee would fall and the stock price would decline. Those who shorted and recovered made a fantastic killing, but that has actually caused the price damage."
The expert also noted, "The fall in the market seems to be partly due to repayment of collateral that investors may have incurred, or due to the margin requirements -- particularly the cash margin in the derivative market, which came into force in April. This may have led to some part of the proprietary trade getting unwinded."
Choksey concluded, "Nothing fundamentally wrong. Maybe the technical factors of the market have taken a toll on the stock."