Reliance Industries Limited (RIL) shares continued their downward trend for the third consecutive trading session on March 4, bringing the stock closer to its 52-week low. The decline comes after India's Ministry of Petroleum and Natural Gas raised a $2.81 billion demand on Production Sharing Contract (PSC) Contractors, which includes Reliance Industries Limited, BP Exploration (Alpha) Limited, and NIKO (NECO) Limited.

Legal Dispute Over KG D6 Block

The current slump in RIL shares follows an adverse legal ruling in a gas dispute case. On February 14, a division bench at the Delhi High Court ruled against Reliance and its partners in a dispute concerning gas extraction from the KG D6 deepwater field, located off India's eastern coast.

The Oil Ministry's demand of $2.81 billion is related to claims over the KG D6 gas block, where Reliance has been engaged in production activities along with its partners. This case has been a long-standing legal battle, impacting investor sentiment and contributing to the recent stock decline.

Reliance’s Response and Legal Position

Reliance Industries has disputed the demand, stating that its legal team considers the court’s decision and the temporary demand invalid. The company has decided to challenge the ruling and has expressed confidence that it will not face any financial liabilities from the case.

Despite this assertion from RIL, investors remain cautious, and the uncertainty surrounding the dispute has led to negative market reactions.

Reliance Share Price Performance

Reliance shares have experienced a significant downturn over the past year.

• On March 4, RIL shares fell over 1%, trading at ₹1,159.25 per share on the BSE.
• Over the past three trading sessions, the stock has declined by nearly 4%.
• On Monday, March 3, the stock plummeted to its 52-week low of ₹1,156.
• In the last year, Reliance shares have dropped 22%.
• In the last six months, the stock has fallen 23%.
• Over the past three months, it has declined 12%.
• In the last one month, it has slipped 6%.

Investor Sentiment and Market Outlook

The falling trend in RIL stock has raised concerns among investors and analysts. Factors such as regulatory challenges, legal disputes, and volatile global oil prices continue to influence Reliance’s stock performance.

Final Thoughts

While Reliance Industries remains a dominant player in India's oil-to-telecom sector, its stock performance has been under pressure due to regulatory hurdles and legal issues. Investors will closely watch further developments in the gas dispute case and Reliance’s response to the Oil Ministry's demand.

Market experts suggest that a resolution in the legal battle or positive business developments could provide relief to RIL stock, but for now, the uncertainty continues to weigh on investor sentiment.

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