Shares of Reliance Industries today tanked over 3 per cent on the Bombay Stock Exchange, amid the company's entry into the hospitality sector by buying stake in EIH Ltd, the promoter of Oberoi Group of Hotels.
Extending the losses for the seventh consecutive session, RIL opened lower and soon declined by 3.13 per cent to hit a low of Rs 918 on BSE.
It was quoting at Rs 920.95, down 2.83 per cent, in afternoon trade.
Analysts said that the stock was underperforming in recent sessions and is unlikely to come out in the near term.
"The EIH deal failed to enthuse the investors and selling pressure is mounting on RIL," Geojit BNP Paribas Research Head Alex Mathews said.
Mukesh Ambani-led energy giant yesterday joined the hands with Oberoi group promoters to thwart a possible takeover of EIH by rival hospitality player ITC, by buying 14.12 per cent stake for Rs 1,021 crore in the company that runs the Oberoi brand of hotels and resorts.
EIH Ltd, which climbed by a whopping 20 per cent in early trade, was quoting at Rs 153.90, up 2.12 per cent in the noon- trade on the BSE.
The crash in RIL also dragged the broader market and the BSE benchmark Sensex was quoting down by 166.85 points, or almost 1 per cent, at 17,865.26 points.
RIL holds the maximum weight in the Sensex pack and any major movement in the scrip bears impact on the index.
"It will be difficult for the RIL to bounce back in near term," CNI Research CMD Kishore P Ostwal said.
