Bad News for Mukesh Ambani and Narayana Murthy: Reliance Industries Loses ₹34,710 Crore, Infosys Suffers ₹19,504 Crore Loss
In a turbulent week for Indian equities, six of the country’s top 10 most valued companies, including Reliance Industries and Infosys, faced significant market valuation losses totaling ₹1.36 lakh crore. Mukesh Ambani’s Reliance Industries, India’s most valued firm, saw its market capitalization plummet by ₹34,710.8 crore, while Narayana Murthy’s Infosys lost ₹19,504.31 crore. These losses, reported on August 10, 2025, were driven by a persistent market downturn, global economic uncertainties, and specific sectoral pressures. Let’s dive into the reasons behind this financial setback and its implications.
The Market Downturn: A Broader Context
The Indian stock market endured its sixth consecutive week of declines, with the BSE Sensex falling 742.12 points (0.92%) and the NSE Nifty dropping 202.05 points (0.82%). This prolonged bearish trend eroded ₹1,36,151.24 crore from the combined market capitalization of six top firms, including Reliance Industries, HDFC Bank, ICICI Bank, Infosys, Bharti Airtel, and Hindustan Unilever. The weak sentiment was fueled by global and domestic factors, including:
- Global Economic Uncertainties: Investor concerns over US Federal Reserve policies, rising US bond yields, and fears of a global economic slowdown triggered foreign fund outflows, impacting emerging markets like India.
- Trump Tariff Scare: Speculation around potential US tariffs, including a proposed 50% tariff on Indian goods due to India’s continued purchase of Russian oil, rattled investor confidence. This uncertainty particularly affected export-reliant sectors.
- Sectoral Pressures: The oil and gas, banking, and IT sectors faced specific challenges, with regulatory concerns and fluctuating commodity prices adding to the volatility.
Reliance Industries: The Biggest Loser
Reliance Industries, led by Mukesh Ambani, bore the brunt of the market rout, losing ₹34,710.8 crore in market valuation, bringing its market cap to ₹18,51,174.59 crore. Despite remaining India’s most valued company, the conglomerate faced multiple headwinds:
- Oil and Gas Volatility: Fluctuations in global crude oil prices and regulatory challenges in the energy sector weighed heavily on Reliance’s stock. The company’s reliance on discounted Russian oil, while cost-effective, drew scrutiny amid geopolitical tensions.
- Market Sentiment: The broader market downturn, coupled with foreign portfolio outflows, hit Reliance’s stock hard. Its share price reflected investor caution, despite the company’s diversified portfolio in telecom, retail, and digital services.
- Recent Losses: This isn’t Reliance’s only setback in 2025. Earlier reports noted losses of ₹67,526.54 crore in February and ₹80,000 crore in September, highlighting a challenging year for the conglomerate.
Despite these losses, Reliance’s strong fundamentals, including its leadership in digital services through Jio and its retail expansion, suggest potential for recovery in the long term.
Infosys: IT Sector Under Pressure
Infosys, co-founded by Narayana Murthy, saw its market valuation drop by ₹19,504.31 crore, bringing it to ₹5,91,423.02 crore. The IT giant faced challenges typical of the sector during this period:
- Global IT Spending Slowdown: Reduced demand for IT services in key markets like the US and Europe, driven by economic uncertainties, impacted Infosys’ stock performance.
- Sectoral Weakness: The IT sector as a whole struggled, with competitors like Tata Consultancy Services (TCS) also facing valuation declines in recent months. Infosys’ earlier losses of ₹44,226.62 crore in March and ₹52,697.93 crore in another week underscored the sector’s volatility.
- Market Sentiment: Weak equity market sentiment and foreign fund outflows further pressured Infosys’ valuation, despite its strong fundamentals and global client base.
Other Companies Affected
Reliance and Infosys weren’t alone in their losses. Other major firms in the top 10 also saw significant declines:
- HDFC Bank: Lost ₹29,722.04 crore, with its market cap falling to ₹15,14,303.58 crore.
- ICICI Bank: Shed ₹24,719.45 crore, bringing its valuation to ₹10,25,495.69 crore.
- Bharti Airtel: Dropped ₹15,053.55 crore, with a market cap of ₹10,59,850.32 crore.
- Hindustan Unilever: Lost ₹12,441.09 crore, resulting in a valuation of ₹5,87,021.88 crore.
However, some companies bucked the trend. Life Insurance Corporation of India (LIC) gained ₹17,678.37 crore, TCS rose by ₹11,360.8 crore, State Bank of India added ₹9,784.46 crore, and Bajaj Finance increased by ₹186.43 crore, showing resilience in specific sectors.
Social Media and Market Sentiment
Posts on X reflected investor frustration, with some pointing to the “Trump tariff scare” as a key driver of the downturn. One user noted, “#Reliance down to 1372. It could go to 1290 levels due to the statement by RIL on impact of profitability due to #RussianOil. #Infosys is also down today.” While not conclusive, these sentiments highlight the role of geopolitical factors in shaping market perceptions.
Implications and Outlook
The significant losses for Reliance and Infosys underscore the vulnerability of even India’s top companies to global economic shifts and policy uncertainties. For Reliance, the tariff threats and oil price volatility pose ongoing risks, but its diversified portfolio and focus on digital and retail sectors offer a buffer. Infosys, meanwhile, faces challenges from a global IT slowdown but remains a leader in innovation and client services.
Analysts suggest that while short-term fluctuations are inevitable, both companies’ strong fundamentals position them for recovery. Investors are advised to monitor global policy developments, particularly US trade policies, and focus on long-term growth prospects in India’s evolving market.
Final Thoughts
The ₹34,710 crore loss for Reliance Industries and ₹19,504 crore loss for Infosys mark a challenging moment for Mukesh Ambani and Narayana Murthy’s enterprises. Driven by a mix of global uncertainties, tariff concerns, and sectoral pressures, these setbacks reflect the broader market’s struggles. Yet, with their robust business models and market leadership, both companies are likely to weather the storm. For investors and stakeholders, patience and a focus on long-term potential will be key as India’s equity markets navigate this turbulent phase.
