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Why Reliance Infrastructure shares nosedived 57% in last three weeks

Extending previous session losses, Reliance Infrastructure share price declined as much as 16.90 per cent to hit a record low of Rs 46.95 on the BSE

twitter-logo BusinessToday.In   New Delhi     Last Updated: June 18, 2019  | 15:06 IST
Why Reliance Infrastructure shares nosedived 57% in last three weeks
Reliance Infrastructure has reported a net loss of Rs 3,301 crore for the fourth quarter ended March 31, 2019

Shares of Anil Ambani-led Reliance Infrastructure continued losing streak on Tuesday, hitting fresh 52-week low, at the Bombay Stock Exchange after the company reported its highest-ever quarterly loss due to impairments and write-offs. The stock of Reliance Infrastructure (RInfra) has plunged over 57 per cent in the last three week.

On Friday, the Reliance Anil Dhirubhai Ambani Group (ADAG) group firm reported a net loss of Rs 3,301 crore for the fourth quarter ended March 31, 2019, as it undertook impairment and write-offs worth Rs 8,500 crore. Formerly known as Reliance Energy, the company posted a net profit of Rs 133.66 crore during the same quarter last year.

Extending previous session losses, Reliance Infrastructure share price declined as much as 16.90 per cent to hit a record low of Rs 46.95, after opening tad lower at Rs 56 against previous close level of Rs 56.50.

The stock was trading lower than 5, 20, 50, 100 and 200-day moving average and the daily, weekly as well as monthly moving average, which signal a bearish trend.

In a similar fashion, stocks of Reliance Infrastructure were trading 13.93 per cent lower at Rs 48.50 on the National Stock Exchange. The scrip opened lower at Rs 55.80 and slipped to fresh low of Rs 48 during the day's trade.

There was also surge in volume trade with 51.85 lakh shares that changed hand over the counter on the BSE.

Also Read:Jet Airways share price hits fresh all-time low of 61.50 after revival hopes for airline crash

Not just investors, auditors are also wary of the firm's future. The firm's auditors said they were unable to give an audit opinion on the annual results.

"We were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these standalone/consolidated annual financial results," auditors BSR & Co and Pathak HD & Associates said.

Last week, the auditor of Reliance Capital and Reliance Home Finance, PriceWaterhouseCoopers, had quit saying the company has restrained it from performing its duties as a statutory auditor.

Other ADAG group companies, including Reliance Capital (RCap), Reliance Power (RPower) and Reliance Communications (RCom) were also under selling stress. 

Edited by Chitranjan Kumar

Also Read: HDFC AMC share price falls on liquidity infusion to FMP schemes with exposure to Essel Group

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