Reliance Industries share price declined over 4% on Monday amid heavy selling pressure, weighing on the broader market indices. Reliance shares fell as much as 4.13% to ₹1,295 apiece on the BSE.
Reliance Industries emerged as the top loser on the benchmark Nifty 50. The sharp decline in the index heavyweight also dragged the broader index lower, with the Nifty 50 slipping as much as 0.7% during the session.
The billionaire Mukesh Ambani-led Reliance Industries holds the second-highest weightage in the Nifty 50 at 8.87%, after HDFC Bank, which has a weight of 10.94%.
The sharp correction in Reliance Industries share price also led to a significant erosion in its market capitalisation. The company’s market cap slipped below ₹18 lakh crore and stood at approximately ₹17.65 lakh crore, according to exchange data.
Why is Reliance share price falling?
The drop in Reliance share price comes amid the escalating US-Iran war in the Middle East, which continues to disrupt the supply of crude oil through the Strait of Hormuz, raising concerns about potential oil shortages.
Reliance Industries share price has declined over 8% in the past two weeks. The recent sell-off follows the government’s decision to impose export duties on diesel, and aviation turbine fuel (ATF), raising concerns about potential pressure on the company’s refining margins.
Effective March 26, the government revised fuel levies, reintroducing export duties of ₹21.50 per litre on diesel and ₹29.50 per litre on ATF, while keeping petrol exports exempt. The move coincided with a ₹10 per litre cut in excise duty on petrol and diesel.
However, a senior official clarified that the reimposed windfall export taxes on diesel and ATF will not apply to Reliance Industries Ltd’s SEZ refinery due to judicial rulings, PTI reported.
According to a Citi Research report, the export taxes are equivalent to $36 per barrel on diesel and $50 per barrel on jet fuel.
“In FY25, 75% of Reliance’s diesel production and 35% of its jet fuel production were from its SEZ refinery, which we believe, based on 2022 precedent, could be exempt from this tax. If we therefore assume the export tax is applicable only on the non-SEZ volumes, the impact should be largely offset by still-elevated diesel/jet fuel cracks vs pre-conflict levels,” Citi had said in the report.
In a separate note, Jefferies said the reimposed export duty broadly caps diesel/ATF spreads at $20 per barrel for standalone refiners like Reliance.
Technical Outlook
According to Shitij Gandhi, AVP – Equity Technical Research, SMC Global Securities, Reliance industries is currently going through a rough patch on the charts, and the technical signals aren’t exactly painting a pretty picture.
“After failing to hold steady at higher levels, Reliance stock price has seen a sharp wave of selling from ₹1,600 levels. The recent ‘gap down’ has dragged the price toward the ₹1,300 level, which is a major psychological floor where we’ve seen buyers step in historically. With the stock now trading below its long-term averages and every bounce being met with more selling, the bears are clearly in the driver’s seat for now,” said Gandhi.
All eyes are now on the ₹1,290 – ₹1300 zone, and he believes if that floor breaks, we might see Reliance share price drift toward ₹1,220.
“While on the upside, ₹1,380 is the immediate hurdle that needs to be cleared before any recovery can be taken seriously,” he added.
Reliance share price has broken below the key short term moving average that has been acting as support since the last few months around ₹1,330, noted Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One.
“In the near term, the weakness could extend, considering the support breakdown. The next support would be around ₹1,250, coinciding with the 200-weekly moving average and 61.8% retracement (golden ratio) of the entire rally seen last year,” said Bhosale.
Sachin Gupta, VP – Research at Choice Broking said that Reliance Industries share price trend has weakened considerably. The earlier uptrend has given way to a sequence of lower highs and lower lows, while the Reliance stock continues to trade decisively below its 50-day and 200-day moving averages, an indication that bears are in control.
“The immediate trigger for the decline appears to be the reinstatement of export duties on diesel and ATF. Following this development, the stock breached multiple support levels within a single session, highlighting the intensity of selling pressure,” said Gupta.
While the Relative Strength Index (RSI) is approaching oversold territory—suggesting the possibility of a short-term pullback, the broader outlook remains fragile. For any meaningful recovery to take shape, Reliance stock price would need to reclaim the ₹1,350 level. Until then, the ₹1,340 zone, which earlier acted as support, is likely to serve as a key resistance, he added.
“On the downside, if weakness persists, RIL stock may drift towards the ₹1,250 – ₹1,200 range, where a stronger support base could potentially emerge before any sustainable reversal,” said Gupta.
At 12:15 PM, Reliance share price was trading 3.88% lower at ₹1,298.50 apiece on the BSE.
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