Reliance Industries Sinks 9% To Make TCS The Most Valued Indian Company

On Monday, shares of Reliance Industries Limited (RIL) declined for the fourth consecutive trading day. The stock fell close to 9 percent to touch an intraday low of Rs 1,153 per share. It was among the biggest losers on Nifty and the biggest contributor to Nifty's downside in terms of points.

Tata Consultancy Services (TCS) also fell amid the general gloom in equity markets amid concerns over fast-spreading coronavirus across continents. Shares of the IT giant fell over 5 percent to an intraday low of Rs 1,996.20.

However, its market capital stood at Rs 7.52 trillion on Monday, which is higher than RIL's current market cap of Rs 7.34 trillion, making it the most valued company in the country.

In 2019, the two companies had been switching the title of the most valued company in India in terms of market cap. Towards the end of last year, RIL made a clear win after it became the first Indian company to hit the 10 lakh crore market cap on hitting an all-time high of Rs 1,617.55 per share.

However, over the past 3 months, the stock has been highly volatile and has lost its market cap significantly.

Brokerage house HSBC has maintained a "Buy" call on the stock and seeing a buying opportunity with the stock down by 15 percent in the past 3 months. It said that valuations are inexpensive at current levels. However, it lowered its target price from Rs 1,780 to Rs 1,740 over deleveraging and downstream margin concerns overlooking the potential of retail and telecom business.