A day after Mukesh Ambani, Chairman, Reliance Industries Ltd (RIL) announced the launch of Reliance Jio, HDFC Bank, India's largest private sector bank, toppled RIL to eclipse as the second most valuable company in terms of market capitalisation (m-cap) in intraday trade.
This was the first time HDFC Bank overtook RIL in m-cap after it made its stock market debut in year 2000. However, RIL managed to regain its second position by the end of Friday's session.
The market cap of HDFC Bank briefly surged to Rs 3,26,841.87 crore in the afternoon trade, which was higher than RIL's market cap of Rs 3,25,737 crore.
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By the end of the session, the RIL stock pared some losses to quote Rs 3,28,413 crore in market cap, while HDFC Bank's market value settled at Rs 3,26,727.47.
Tata Consultancy Services (TCS), country's largest software services firm, stands atop in terms of market value.
Experts believe the growth prospects of RIL have come under pressure after the announcement of Reliance Jio's launch.
"Although the launch of Reliance Jio is a great moment for consumers of the country, it is certainly a do or die situation for the company. The investment to the tune of Rs 150,000 crore needs to generate at least 11.5 per cent return, which is the implicit historical returns on its investments that it had delivered in the past. Therefore, to accumulate net surplus of Rs 17,250 crore per annum seems a herculean task in the near future," said Jimeet Modi, CEO, Samco Securities.
"This is the biggest gamble Reliance has played ever in its history, the success of which will certainly decide the long term prospects of the company," he added.
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