Reliance Industries opened around 1.5% lower at Rs.2440 but soon went down to hit an intraday low at Rs.2368.20, down 4.2%. It has recouped from there but is still in the red at Rs.2392 levels.

The news came in on Saturday that Reliance and Saudi Aramco have mutually determined to re-evaluate the proposed investment in O2C business. The company also conveyed under the current circumstance, its application with NCLT for segregating the O2C business from RIL is being withdrawn.

The decision to re-evaluate the proposed investment follows RIL’s recently announced plans to develop green energy giga complex at Jamnagar. This deal was signed in 2019 and since then a lot a changed on the energy landscape.

This has come as a negative surprise for the market which was expecting the deal to go through, especially after Aramco’s chairman was inducted on RIL’s board.

Though this does not have any material impact on the financials of the company, just that there was so much hype and hoopla around the deal that it not going through is more psychological.