Reliance Industries shares fall over 3 pc

New Delhi:  Shares of Reliance Industries fell over 3 per cent on Monday after the company's June quarter earnings failed to enthuse investors.

The market heavyweight stock declined 3.31 per cent to settle at Rs 2,420.15 on the BSE, after a weak start early in the trade. During the day, it fell 3.95 per cent to Rs 2,403.95 apiece.

On the NSE, it went lower by 3.42 per cent to settle at Rs 2,417.40 apiece.

The company's market valuation eroded by Rs 55,981.5 crore to Rs 16,37,264.23 crore on the BSE.

The fall in Reliance Industries shares also dragged down the benchmark indices.

The 30-share BSE benchmark ended 306.01 points or 0.55 per cent lower at 55,766.22 points and the NSE Nifty dropped 88.45 points or 0.53 per cent to 16,631 points.

In traded volume terms, 4.66 lakh shares of the company were traded on the BSE and over one crore shares on the NSE during the day.

On Friday, Reliance Industries reported a 46 per cent jump in its June quarter net profit on bumper earnings from oil refining as well as an uptick in telecom and retail businesses.

"RIL's results, though impressive on the telecom and retail front, fell slightly below expectations in the refining space," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

The oil-to-retail-to-telecom conglomerate's consolidated net profit stood at Rs 17,955 crore, or Rs 26.54 a share, in April-June compared to Rs 12,273 crore, or Rs 18.96 per share, a year back.

Sequentially, net profit was up 11 per cent but lagged analyst estimates who had factored that the company would have captured the biggest discount available on Russian crude and exported all fuel when margins peaked.

"Nifty opened gap down dragged by index heavyweight Reliance after it reported below expected Q1 FY23 earnings," Siddhartha Khemka, Head - Retail Research at Motilal Oswal Financial Services Ltd, said.