RIL tumbles nearly 13% to Rs 1,113.15 on weak petroleum demand outlook

Weaker crude indicates oversupply and could be supportive of margins; howeverm if the weakness is demand-related, it could have the opposite effect on margins

Mukesh Ambani-promoted Reliance Industries (RIL) on Monday fell close to 13 per cent at the stock exchanges, on anticipated weak petroleum demand.

In Monday’s trade, RIL closed at Rs 1,113.15 per share, 12.35 per cent down from its previous close on the Bombay Stock Exchange. At play, was the fall in crude oil prices and an expectation of lower demand for the petrochemicals business.

“What is playing out is a weaker demand for petroleum, in general, impacting RIL's stock prices. The petchem segment has around 1-1.5x times linkage to economic growth. A weaker demand environment, stemming from weaker economic growth,