Shares of Reliance Industries Limited (RIL), the oil-to-telecom conglomerate led by Mukesh Ambani, experienced a volatile trading session on Wednesday, January 7. This movement came on the back of a significant cumulative loss of over 5% suffered in the two previous trading sessions, reflecting the overall weak sentiment in the broader equity market.
Intraday Volatility and Recent Performance
The Reliance share price opened at ₹1,510 on the BSE, slightly above its previous closing level of ₹1,507.70. During the day, the stock swung between an intraday high of ₹1,519.95 and a low of ₹1,502.20. Around 11:15 AM, the blue-chip stock was trading marginally lower, down by 0.06% at ₹1,506.85. This was in line with the benchmark Sensex, which was also down 0.11% at 84,972 points at that time.
The stock had witnessed a sharp decline of 4.42% in the session on January 6, marking its most significant single-day fall since June 2024. This sell-off followed the stock hitting a record high of ₹1,611.20 just a day earlier, on January 5. Despite the recent pressure, it is important to note that the large-cap stock significantly outperformed the market in 2025, surging over 29% compared to the Sensex's 9% rise last year.
Key Drivers Behind the Market Movement
Analysts point to multiple factors contributing to the recent price action in Reliance shares. A primary reason cited is profit booking by investors after the stock's strong rally. Furthermore, rising competition in the retail sector has prompted some caution, as the retail business is a crucial growth engine for the conglomerate alongside its digital services arm, Jio.
In a separate development, the company was in the news regarding reports of Russian oil imports. On January 6, Reliance filed a clarification with the stock exchanges, denying a Bloomberg news report that claimed three vessels carrying Russian oil were heading for its Jamnagar refinery. The company stated it had denied any such purchase for January delivery. Subsequently, Bloomberg updated its report to clarify that the Russian oil cargo earlier linked to Reliance had been discharged elsewhere.
Expert View: Long-Term Bullishness Intact
Despite short-term fluctuations, market experts maintain a positive long-term outlook on Reliance Industries. The core investment thesis remains anchored on the robust growth prospects of its consumer-facing businesses—Jio and Retail—which are seen as relatively insulated from the volatility in crude oil prices.
Ajit Mishra, Senior Vice President of Research at Religare Broking, has a 'buy' recommendation on the stock. He has set an immediate long-term target price of ₹1,625. "Short-term fluctuations are possible, especially on news flow. However, we believe any mild corrections could offer a good opportunity to buy the stock," Mishra said. He added that they maintain a buy recommendation and view the dips as an opportunity rather than a risk for long-term investors.
The overall consensus suggests that while the stock may experience periods of consolidation and news-driven volatility, its fundamental growth drivers remain strong, making it a core portfolio holding for many investors with a long-term horizon.
