Reliance vs Adani Share: The fall of more than 1600 points in the stock market today has created an outcry. Due to the Iran-Israel war, crude oil prices have crossed $122, due to which big stocks like Reliance Industries have fallen. While Adani Total Gas shares rose. Know the reason behind this…
Adani vs Reliance Share: The huge fall of Sensex by around 1,627.00 and Nifty by 471 points till 3 pm today has cost investors crores of rupees. The Iran-Israel-America war and the fire of crude oil at $122 have scorched the Sensex. The government tried to provide a solution by reducing excise duty on petrol and diesel, but the mood of the market is different. While on one hand the shares of giants Reliance Industries and IOC have fallen, on the other hand Adani Total Gas has surprised everyone by jumping by 5% even in this storm. Know the reasons for the decline in Reliance and rise in Adani shares…
Why did Reliance shares fall?
The government has reduced taxes, but the challenge for oil marketing companies (OMCs) has not reduced. Crude oil is so expensive in the international market that companies are still suffering losses of ₹ 30 to ₹ 48 on every litre. This is the reason that despite the tax cut, Reliance shares fell by 4.59% to Rs 1,348.30 by 3 pm. Investors fear that if the war prolongs, the profits of oil companies including Reliance may be completely wiped out.
What is the reason behind the growth of Adani Total Gas?
When the entire oil sector is under pressure, then why is this Adani stock greenlighted? In fact, City Gas Distribution (CGD) companies are expected to benefit from tax cuts and changes in ‘windfall tax’. When it comes to affordability of petrol and diesel, the gas sector is seen as a future relief. On the basis of this ‘sentiment’, Adani Total Gas share is trading 2.12% higher at Rs 531.85 till 3 pm. Earlier the stock gained 4.28%.
There was a huge decline in these stocks also
Apart from Reliance, shares like Indian Oil Corporation (IOC), Mangalore Refinery and Petrochemicals (MRPL), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) also fell by 2%-4%. The biggest decline was seen in refining companies. These companies appeared under pressure in early trade.
Disclaimer: This article is for general information and educational purposes only. The information given in it is based on current trends. Do not take this as any kind of investment advice, financial consultation or recommendation. Investing in the stock market is subject to risks. Oil stocks can fluctuate rapidly due to the price of crude oil, global events and government policies. Before investing in any stock, definitely consult your financial advisor.
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