Shares of Reliance Industries dropped more than 4 per cent on Tuesday as investors grew increasingly uneasy about mounting competition in the retail space and lingering uncertainty over the company’s crude oil sourcing strategy. The decline marked the stock’s steepest single-day fall since June 2024.
Investor nervousness was driven by fresh signs of strain in the retail sector. Fast-fashion major Trent Ltd reported a 15 per cent year-on-year decline in average revenue per square foot during the December quarter, indicating a more challenging business environment. Adding to the pressure, Citigroup flagged that intensifying competition is eating into the market share of established players, a view that weighed on sentiment surrounding Reliance’s retail operations.
Concerns were also amplified by developments on the energy front. Reliance, which runs the world’s largest single-location refining complex and was until recently India’s biggest buyer of Russian crude, said it has not received any Russian oil cargoes for nearly three weeks and does not expect any deliveries in January. The company had earlier announced a halt in Russian crude usage at its Jamnagar export refinery to comply with EU sanctions.
Despite near-term worries, Morgan Stanley remains optimistic, citing possible growth drivers in 2026 such as a Jio Platforms IPO, higher telecom tariffs and stronger refining margins. On Tuesday, Reliance shares closed around ₹1,507 on both exchanges after falling over 5 per cent intraday, while on Wednesday morning the stock edged up 0.36 per cent to ₹1,513.
