Reliance Industries Limited (RIL), India’s largest company by market capitalisation, has seen its stock fall by 23 per cent from its peak in July. The company’s market cap has dropped from Rs 21.50 lakh crore to Rs 16.5 lakh crore, a decline of about Rs 5 lakh crore. If RIL’s stock fails to rise by 5 per cent in the remaining five trading sessions of the year, it will not only record its longest losing streak since the Covid-19 market slump, but will also post negative returns for the first time in 10 years.
TCS and HDFC Bank Closing in on RIL’s Top Spot
Tata Consultancy Services (TCS) and HDFC Bank are rapidly catching up to Reliance Industries in terms of market capitalisation. TCS’s market cap has surged to Rs 15 lakh crore from Rs 13.72 lakh crore in January, positioning it as a strong contender to surpass RIL. HDFC Bank’s market cap rose to Rs 13.74 lakh crore from Rs 12.95 lakh crore this year.
Both TCS and HDFC Bank stocks have performed well in 2024. TCS has gained nearly 10 per cent, while HDFC Bank’s stock surged around 7 per cent as of December 24.
Investors are optimistic about TCS and HDFC Bank, driven by the global rate cut cycle. On the other hand, Reliance Industries’ earnings have consistently fallen short of estimates. RIL’s earnings per share estimates for the next year have declined by 16 per cent since the start of the current financial year. Despite this, brokerages remain positive on the stock, with Morgan Stanley recently giving RIL an overweight rating.
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