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Reliance Industries faced a sharp decline in its stock price as reports emerged that a subsidiary of the conglomerate could face penalties for missing a key battery manufacturing deadline. The stock fell 3.6% intra-day to Rs 1,156 on the National Stock Exchange (NSE) before closing at Rs 1,174.00, marking a 2.17% decline (Rs 26.10) from its previous close of Rs 1,200.10 on March 3, 2025. This drop further extends the company’s recent losses, as its stock has declined over 4% in the past five sessions, 6.5% in a month, and nearly 23% in six months.
Government Initiative and Potential Penalty
Reliance New Energy, a subsidiary of Reliance Industries, was one of the companies awarded a contract under Prime Minister Narendra Modi’s initiative to boost domestic battery cell manufacturing and reduce import dependency. However, according to a report by Bloomberg, the company is likely to miss the deadline, which could result in a penalty of Rs 125 crore ($14.3 million).
Another company under scrutiny for similar reasons is Rajesh Exports, which also participated in the government’s battery cell manufacturing program. The potential fines signal a setback for the government’s ambitious push to promote local production in the energy sector.
Reliance Among Major Losers on Nifty 50
The negative developments weighed on Reliance Industries’ stock, making it one of the biggest losers in the Nifty 50 index on March 3. Apart from Reliance, Coal India contributed significantly to the Nifty 50’s fall.
Comparing the broader market trend, the Nifty 50 index has dropped 1.8% in the past five trading sessions, 5.23% over the last month, and 12.43% in the previous six months, erasing all gains from the past year.
With the ongoing stock slide and regulatory hurdles, investors remain cautious about the near-term outlook for Reliance Industries as it navigates potential penalties and market volatility.
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