Reliance Industries Ltd (RIL), India’s largest company by market capitalisation, has staged a remarkable turnaround on the stock market, shifting from being the biggest drag on the Nifty 50 index earlier this year to emerging as its top driver in recent weeks. This reversal reflects a combination of strong operational performance, strategic announcements, and improving sectoral sentiment, analysts say.
The Dramatic Reversal
At the start of 2025, Reliance shares were underperforming due to:
- Concerns over slowing telecom growth in Jio amid intense competition.
- Lacklustre petrochemical margins driven by subdued global demand.
- Investor disappointment with delays in the timeline for Jio Financial Services’ market listing and expansion.
However, since May 2025, Reliance has surged nearly 22%, adding substantial points to the Nifty index. Its stock hit an all-time high of ₹3,160, cementing its position as the top contributor to recent Nifty gains.
What Triggered the Rebound?
1. Strong Q4 Results
In its March 2025 quarter earnings, RIL reported:
- Consolidated net profit of ₹22,300 crore, up 14% year-on-year.
- Robust growth in retail revenue by 19%, driven by electronics, grocery, and fashion segments.
- Healthy EBITDA margins across its digital services arm Jio Platforms.
2. Optimism in Oil-to-Chemicals (O2C) Business
Global oil prices have stabilised above $85 per barrel, improving refining margins. Reliance’s Jamnagar complex utilisation rose to 98%, while planned expansions in specialty chemicals are expected to drive high-margin growth.
3. Green Energy Announcements
The company reaffirmed its target to achieve net-zero carbon emissions by 2035, with major investments in:
- Gigafactories for solar modules and battery storage.
- Green hydrogen projects at Jamnagar and Kakinada.
Investors view this as a strategic pivot to position Reliance as India’s leading renewable energy player alongside Adani Green and Tata Power.
4. Jio Financial Services Momentum
After an extended delay, Reliance finalised its roadmap for Jio Financial Services, including:
- Entering the consumer lending and wealth management space in FY26.
- Partnering with leading fintech firms to offer bundled services for Jio subscribers.
This has revived market optimism on unlocking value from its non-core businesses.
Reliance’s Contribution to Nifty in 2025
| Month | Stock Performance (%) | Impact on Nifty Points |
|---|---|---|
| Jan | -6.5% | -72 |
| Feb | -2.2% | -28 |
| Mar | +1.5% | +19 |
| Apr | +4.1% | +46 |
| May | +9.8% | +113 |
| Jun | +11.7% | +134 |
(Source: NSE data analysis)
In the past two months alone, Reliance has contributed over 240 points to the Nifty 50, making it the index’s biggest upward driver, surpassing HDFC Bank, ICICI Bank, and Infosys.
Market Analyst Views
- Motilal Oswal Financial Services: “Reliance’s diversified earnings profile insulates it from sectoral shocks. With telecom ARPU stabilising, retail expansion on track, and green energy investments gaining traction, it remains an attractive long-term bet.”
- Kotak Institutional Equities: “Investor focus will remain on execution of green energy projects and clarity on the Jio Financial Services strategy. Any delays could impact valuations.”
Investor Sentiment
Domestic mutual funds have increased holdings in Reliance after trimming stakes in Q4 FY25. Foreign institutional investors also turned net buyers in May-June as:
- Global crude demand outlook improved.
- India’s growth forecasts were upgraded by the IMF, favouring heavyweight stocks like RIL.
Risks Ahead
Despite the rally, analysts caution on:
- Execution risks in mega green energy projects.
- Slower than expected monetisation of Jio Financial Services.
- Global recessionary risks impacting petrochemical demand.
Conclusion
Reliance Industries’ transformation from Nifty’s biggest drag to its top driver underscores the company’s resilience and strategic agility. As it pivots towards a clean energy and digital financial ecosystem while sustaining core O2C and telecom growth, RIL continues to be a bellwether not just for the Nifty but also for India’s broader economic narrative in the coming decade.
Disclaimer: This news analysis is based on NSE market data, company filings, and brokerage reports as of July 2025. Investors are advised to consult certified financial advisors before making investment decisions.
