Reliance Shares Plunge Over 5%: Retail Woes & Profit Booking Blamed; What's Next?

• Reliance Industries shares dropped over 5% in a single day, marking their biggest fall since June 2024 and impacting broader markets.
• Concerns in the retail sector, highlighted by Trent Ltd.'s revenue decline and Citigroup's warning on competition, are cited as a primary reason.
• Profit booking contributed to the fall, as RIL shares had significantly outperformed the Nifty 50 in 2025.
• Despite the fall, Morgan Stanley sees 2026 growth triggers like Jio Platforms IPO and telecom tariff hikes.
• Risks include potential US tariffs, weak consumer demand, and high valuation (23x forward earnings).

Why It Matters: RIL shares saw a sharp decline due to retail sector concerns and profit booking, despite future growth triggers.