The post title says it all. Following table and charts highlight the point.
| Period | Absolute Nifty Return | Absolute RELI.NS return |
|---|---|---|
| Last 5Y | 55.98% | -22.89% |
| Last 3Y | 70.95% | 16.52% |
| Last 1Y | 29.57% | -5.03% |
The 1Y and 5Y charts from Yahoo! Finance pictorially show the same information as in the table:
The above table and charts infer just one thing: Reliance Industries Ltd (RELI.NS) has under-performed Nifty on a consistent basis and it is no surprise the stock is continuing to do so this year as well. It is important to note that Reliance Industries itself is a member of Nifty with a weighting of close to 5% now - this would make the returns of Nifty Index outside RIL to trump RIL even more than the numbers as indicated in the table above.
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| RIL vs Nifty 1Y |
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| RIL vs Nifty 5Y |
The above table and charts infer just one thing: Reliance Industries Ltd (RELI.NS) has under-performed Nifty on a consistent basis and it is no surprise the stock is continuing to do so this year as well. It is important to note that Reliance Industries itself is a member of Nifty with a weighting of close to 5% now - this would make the returns of Nifty Index outside RIL to trump RIL even more than the numbers as indicated in the table above.
There are quite a few investors (read: mutual funds; LIC itself holds close to 8%) who are long this stock and consistently so, wonder how they justify their positions.
This is what Udayan from CNBC had to say
Update: Just a day after I publish this post, Mint Newspaper came up with an article on Reliance Industries: RIL shares lag Sensex for Seventh Consecutive Year
This is what Udayan from CNBC had to say
Update: Just a day after I publish this post, Mint Newspaper came up with an article on Reliance Industries: RIL shares lag Sensex for Seventh Consecutive Year
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