Shares of crude oil exploration company Reliance Industries fell sharply after crude oil prices crashed in international markets.
New Delhi| The operator of world’s largest crude oil refining facility at Jamnagar and operator of KG-D6 basin in Krishna Godavari basin – Reliance Industries – slumped as much as 13.65 per cent, its biggest single-day fall in at least 10 years, to hit an intra-day low of 1,096.65, data from BSE showed.
State-run oil explorer ONGC also slumped as much as 13 per cent to hit an intra-day low of Rs 77.80. Oil prices in international markets crashed more than 30 per cent after the disintegration of the Organization of the Petroleum Exporting Countries (OPEC)+ alliance triggered an all-out price war between Saudi Arabia and Russia that is likely to have sweeping political and economic consequences.
The market cap of RIL fell to Rs 7.05 lakh crore compared to Rs 7.40 lakh crore market cap of TCS today.
The share price of Reliance Industries, which runs the world’s biggest refining complex at Jamnagar in Gujarat, fell 13.65% to Rs 1,094.95, its fresh 52 weeks low on BSE. The RIL stock recovered some ground and closed 12.35% or 157 points lower at Rs 1113 on BSE.
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The large-cap stock has lost 17.15% in last four days. It has fallen 22.36% in last one month as markets started to take into account the rising number of coronavirus cases across the world.
Crude oil fell the most since 1991 on Monday after Saudi Arabia started a price war with Russia by slashing its selling price and pledging to unleash its pent-up supply onto a market reeling from falling demand because of the coronavirus outbreak.
Brent crude futures fell by as much as $14.25, or 31.5 per cent, to $31.02 a barrel. That was the biggest percentage drop since January 17, 1991, the start of the first Gulf War, and the lowest since February 12, 2016.
US West Texas Intermediate (WTI) crude fell as much as $11.28, or 27.4 per cent, to $30 a barrel. That was also the biggest percentage drop since the first Gulf War in January 1991 and the lowest since February 22, 2016. It was trading at $32.61.
Reliance Industries ended 13 per cent lower at Rs 1,104.50 and ONGC dropped 16 per cent to close at Rs 74.35, underperforming the Sensex which ended 5.2 per cent lower.
(Inputs From NDTV)