Reliance Industries shares fall 4 pc after earnings announcement

Shares of Reliance Industries fell nearly 4 percent in morning trade on Monday after the company's June quarter earnings failed to enthuse investors.

The market heavyweight stock declined 3.95 percent to Rs 2,404 on the BSE, after a weak start early in the trade. At the NSE, it went lower by 3.98 percent to Rs 2,403.35 apiece.

The fall in Reliance shares was instrumental in dragging down the benchmark indices.

The 30-share BSE benchmark was trading 400.84 points or 0.71 percent lower at 55,671.39 and the NSE Nifty quoted 109.60 points or 0.66 percent down at 16,609.85.

Reliance Industries on Friday reported a 46 percent jump in its June quarter net profit on bumper earnings from oil refining as well as an uptick in telecom and retail businesses.

''RIL's results, though impressive on the telecom and retail front, fell slightly below expectations in the refining space,'' said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The oil-to-retail-to-telecom conglomerate's consolidated net profit stood at Rs 17,955 crore, or Rs 26.54 a share, in April-June compared to Rs 12,273 crore, or Rs 18.96 per share, a year back.

Sequentially, net profit was up 11 percent but lagged analyst estimates who had factored that the company would have captured the biggest discount available on Russian crude and exported all fuel when margins peaked.