Reliance Industries shares have experienced a significant decline of 21% in 2026, resulting in the loss of ₹4 lakh crore from the market value of India's most valuable company. According to reports from The Economic Times, the heavyweight shares have underperformed the benchmark Nifty50 index, which has fallen around 11% this year amid sharp surge in oil prices, AI concerns and other headwinds. RIL, which holds nearly 8% weight in the index, has faced multiple challenges that have contributed to this substantial decline.
The shares saw a sharp downturn in March when the government reintroduced windfall taxes on diesel and ATF exports, reversing its earlier decision to scrap such taxes. As reported by The Economic Times, authorities sought to recalibrate revenue from the energy sector amid heightened volatility in global oil markets at the onset of the Middle East conflict. The company is a major exporter of ATF and diesel, with its two refineries at Jamnagar producing nearly 5 million tonnes of aviation turbine fuel, a large part of which is exported. Overall, it produces one-fourth of India's total ATF.
Despite the significant price decline, analysts are advising caution for investors planning to buy the dip. According to The Economic Times, analysts recommend that investors should be wary and avoid the temptation to buy during this dip, as the company is currently grappling with windfall tax implications and rising concerns regarding a Jio listing. The analysts suggest that long-term investors can accumulate in tranches over the next few months, with key triggers ahead including Jio's IPO pricing, the next tariff hike, stability in refining margins and progress in the new energy business.
From a technical perspective, the price action structure remains weak with no clear signs of reversal emerging, as reported by The Economic Times. The zone of ₹1,275–1,280 is likely to act as an immediate resistance, and the bearish bias is likely to remain intact as long as the stock trades below this zone. Technical analysts conclude that at current levels, it may be prudent to avoid buying the dip, with buying being considered only after strong reversal signals emerge.
