Posted on April 7, 2025, by Niftynews
Reliance Industries (RIL), one of India’s largest blue-chip companies, experienced a sharp decline in its stock price on April 7, 2025. The Reliance share price crashed by more than 7%, reaching a new 52-week low of ₹1,115.55. This dramatic drop was part of a broader global stock market selloff, affecting many stocks and indexes worldwide, including India’s benchmark Sensex.
Reliance Share Price Performance: What Led to the Crash?
On April 7, Reliance shares opened at ₹1,125, significantly lower than the previous day’s close of ₹1,204.70. The price swiftly plummeted by 7.4%, touching the 52-week low of ₹1,115.55. However, it did recover slightly by mid-morning, trading around ₹1,146.85, marking a 4.8% decrease.
The weakness in Reliance’s share price comes amid a global market selloff, where the Sensex dropped nearly 4,000 points. Both the BSE Midcap and Smallcap indices also suffered significant losses of up to 10% during the early trading hours. This market-wide correction impacted many stocks, with Reliance being one of the hardest hit.
Reliance Share Price Trend: A 31% Drop from 52-Week High
Reliance’s share price has been on a downward trend in April, following a 6% rise in March. As of now, the stock has fallen by over 10% in April alone. This sharp decline comes after the stock hit a 52-week high of ₹1,608.95 in July 2024. Since then, Reliance shares have dropped by a staggering 31%, reaching their current 52-week low of ₹1,115.55.
The recent crash raises questions about the company’s future growth prospects and whether it can recover from this sharp fall. Despite the current downturn, Reliance Industries remains one of the most influential companies in India.
Global Stock Market Trends and Reliance’s Position
The broader market crash that impacted Reliance shares was driven by global economic factors. As stock markets worldwide experienced significant downturns, investors’ risk appetite shrank, leading to widespread selling. In India, the Sensex, which tracks the 30 largest publicly listed companies, experienced one of its worst days, dropping nearly 4,000 points in a single session.
Reliance, as one of the largest companies in India, often feels the impact of such market-wide shifts. However, the company’s diversified business model, including its presence in retail, telecom, petrochemicals, and refining, positions it to weather such fluctuations in the long term.
Brokerage Opinions: Long-Term Potential Despite Short-Term Volatility
Despite the recent crash, many analysts remain bullish on Reliance’s long-term prospects. Goldman Sachs, a global brokerage firm, recently reaffirmed its “buy” rating for the stock, setting a price target of ₹1,640 per share. Goldman Sachs acknowledges that Reliance’s net asset value (NAV) discount has improved but remains relatively wide compared to historical averages. The brokerage attributes the stock’s current weakness to muted EBITDA growth in FY25, coupled with slower retail expansion and low margins in the refining and petrochemical sectors over the last few quarters.
Technical Analysis: Reliance Shares Approaching Key Support Levels
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, provided insights into the technical aspects of Reliance’s stock. Patel noted that Reliance shares have breached the key support level of ₹1,200 and are currently trading around ₹1,145. Technical analysis suggests that the stock may consolidate within the ₹1,100–1,200 range before any significant directional movement occurs.
Support levels are seen around ₹1,100 and ₹1,050, while resistance levels are identified at ₹1,200 and ₹1,300. For long-term investors, this may present a buying opportunity near the support levels, although Patel advises caution due to the elevated volatility in the market.
Should You Buy Reliance Shares Amid the Current Crash?
The current downturn in Reliance share prices may be a reflection of broader market conditions rather than specific issues within the company. Long-term investors may find this a compelling opportunity to accumulate shares at discounted prices, especially if the stock stabilizes near key support levels. However, short-term traders should remain cautious, given the heightened volatility and uncertain market environment.
Conclusion: Navigating the Current Volatility in Reliance Shares
The 7% crash in Reliance share price on April 7, 2025, highlights the significant impact of broader market conditions on even the most robust companies. While the stock’s sharp decline is concerning in the short term, analysts remain optimistic about its long-term potential. Reliance’s diversified business model, strong leadership under Mukesh Ambani, and continued growth in sectors like retail and telecom are expected to drive future growth. However, the near-term volatility may present challenges for investors.
