Reliance Industries' shares plunge over 8 per cent amidst falling oil prices

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Shares of Reliance Industries Ltd (RIL) on Thursday fell over 8 per cent, wiping off nearly Rs 41,152 crore from its market valuation, amidst massive plunge in international oil prices.

On the BSE, the scrip settled down 7.95 per cent at Rs 1,061.6. During the day, it dived 8.99 per cent to touch its 52-week low of Rs 1,049.5.

On the NSE, the stock closed the counter at Rs 1,059, sliding 8.2 per cent. Intra-day, it plunged 9.08 per cent to Rs 1,048.7.

The company's market capitalisation fell Rs 41,151.82 crore to stand at Rs 6,72,976.64 crore at the end of trading on Thursday.

Meanwhile, BSE Sensex plunged over 2,919 points to settle at 32,778.14.

"Since Reliance is the largest private refining company in India, sentimentally, with crude prices dropping sharply, gross refining margin is expected to be weak and hence the stock has taken a beating," Vinay Pandit, head of institutional equities at IndiaNivesh said.

"The company is also a leading frontline index stock, which has seen significant index selling, pulling down Reliance Industries in the process as well," he added.

Oil prices plunged about 6 per cent on Thursday after US President Donald Trump announced a 30-day ban on all travel from Europe to the United States over the coronavirus pandemic.

The West Texas Intermediate slipped 6.2 per cent to USD 31 per barrel, while Brent crude was down 5.8 per cent at under USD 34 per barrel.

Crude markets have been in turmoil since the start of the week, when they suffered their biggest one-day drop in a generation after Riyadh slashed prices following a row with Moscow about output cuts.