RIL Shares Drop Over 2%, Mcap Down by Nearly Rs 40,000 Cr Amid Elon Musk Allegations

New Delhi: Shares of Reliance Industries fell over 2 per cent on Thursday, wiping out Rs 39,718 crore from its valuation and contributing significantly to the overall market decline amid concerns over Elon Musk’s allegation that Starlink’s satellite internet services were being blocked by domestic business interests.

The Indian government and Elon Musk engaged in a verbal spat on Thursday after the Telecom Department rejected allegations that Starlink’s satellite internet services were being blocked by domestic business interests, leading the tech trillionaire to ask if “Ambani is the real boss of India”.

The government earlier in the day slammed the US business tycoon over his allegations that Starlink’s satcom services are being blocked and made it clear that every satcom licensee in the country must demonstrate compliance with security norms.

RIL shares declined 2.43 per cent to end at Rs 1,177.30 on the BSE. At the NSE, the stock fell by 2.45 per cent to close at Rs 1,178.

The company’s market valuation eroded by Rs 39,718 crore to Rs 15,93,185.78 crore.

RIL contributed 164 points, the maximum, to the BSE Sensex fall. Reliance carries roughly 9 per cent of the Nifty weight, so the drop took about 53 points off the index.

Shares of Vodafone Idea dropped 3.03 per cent, while Bharti Airtel also slipped 2 per cent for the day.

Falling for the second day running, the 30-share BSE Sensex tumbled 1,045.46 points, or 1.44 per cent, to settle at a more than two-and-a-half-year low of 71,593.24. During the day, it slumped 1,310.95 points, or 1.80 per cent, to 71,327.75. The BSE barometer had previously closed near this level on February 13, 2024.

The 50-share NSE Nifty dropped 371.25 points, or 1.64 per cent, to end at 22,231.80. During the day, it fell 423.15 points, or 1.87 per cent, to a low of 22,179.90 — also its intra-day 52-week low.

US business tycoon Elon Musk, in a veiled attack on certain telecom operators, on Wednesday alleged that “certain oligarchs” have blocked his company’s satellite communication services in India to maintain their monopoly in the country.

The government rejected his allegation, saying all satellite communications companies were subject to the same regulatory and security requirements.

After market hours, Musk in an X post asked whether “Ambani is the real boss of India”.

“Starlink is licensed in over 165 countries and has spent five years complying with every single law and requirement of the government of India, so why still no license?.

“Is Ambani the real boss of India?” Musk said in the post.

The government has licensed three companies – Musk’s Starlink, Reliance Jio’s satellite venture Jio Satcom and Bharti-backed Eutelsat OneWeb – but none can begin commercial services until required security assessments and spectrum-related approvals are completed.

“Security assessment as part of this process is currently under way in respect of all three licensees,” the telecom ministry said in a statement.

India’s telecom market is dominated by Reliance Jio, Bharti Airtel and Vodafone Idea, while satellite broadband represents a new potential segment that could extend connectivity to remote and underserved areas.

Bharti Airtel Chairman Sunil Bharti Mittal, whose group backs OneWeb, said his own satellite venture was also waiting for regulatory approvals.

“We are waiting for our own approvals,” Mittal said at the India Mobile Congress when asked about Musk’s allegations.

Jio Platforms Managing Director Akash Ambani declined to comment, saying he had not seen Musk’s remarks.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)