Reliance Industries Limited (RIL) achieved a significant milestone on Tuesday as it became the first Indian company to surpass Rs 20 lakh crore in market capitalization. This remarkable feat was driven by a surge in the share price of the Mukesh Ambani-led conglomerate, reaching an all-time high of Rs 2,957.80 on the Bombay Stock Exchange (BSE) during intra-day trading.
Closing at Rs 2,928.95 on the BSE, RIL’s share price experienced a 0.90% increase, outpacing the benchmark Sensex’s 0.68% gain. The year 2024 witnessed a remarkable rally for RIL, with its stock soaring by an impressive 14%.
A Rapid Rise in Valuation
The journey of RIL’s market capitalization is nothing short of extraordinary, having doubled in just over three years. From standing at Rs 10 lakh crore in November 2019 to crossing the Rs 15 lakh crore mark in September 2021, RIL’s value has seen a meteoric rise. Notably, in the past two weeks alone, the company’s market capitalization surged by an impressive Rs 1 lakh crore.
Putting Things into Perspective
To comprehend the magnitude of RIL’s market cap achievement, it’s essential to consider its proportion to India’s budget and economy. Currently, RIL’s market capitalization constitutes approximately 45% of India’s budget for the fiscal year, which stands at Rs 44.9 lakh crore. Furthermore, it accounts for 11.64% of India’s GDP, with the country’s nominal GDP estimated at Rs 296.58 lakh crore for the current fiscal year.
A History of Wealth Creation
Reliance Industries has a rich history of wealth creation in the Indian stock market. From reaching the Rs 1 lakh crore mark in August 2005 to hitting Rs 5 lakh crore in July 2017, RIL’s journey has been marked by significant milestones. Notably, the company’s market capitalization has surged by Rs 15 lakh crore in less than seven years, with Mukesh Ambani, the company’s promoter and chairman, emerging as the biggest beneficiary of this rally.
Leading the Pack
RIL’s market capitalization dominance extends well beyond its peers, with Tata Consultancy Services (TCS) trailing with a market cap close to Rs 15 lakh crore. HDFC Bank, ICICI Bank, and Infosys follow suit, but none come close to RIL’s commanding position in the market.
Reliance Industries’ remarkable achievement underscores its position as a titan in the Indian business landscape, with its relentless growth trajectory setting new benchmarks for the industry. As it continues to push boundaries and redefine success, RIL remains a beacon of innovation and prosperity in India’s corporate world.
