Mumbai: Shares of Reliance Industries Ltd, India’s most valued company, declined over 6.5% this week, its biggest drop in a year, tracking a fall in the local equity markets.

RIL closed at Rs883.50 a share, down 2% from its previous close, while India’s benchmark Sensex Index rose 0.1% to 33,314.56 points. Since 3 November, RIL has fallen 6.51%, its biggest slump since November 2016. The stock declined in six out of seven sessions.

Analysts said that the stock reacted negatively this week also due to Moody’s Investor Services lowering the company’s credit outlook to Stable from Positive citing a likely negative free cash flow situation arising from heavy debt repayments over the next 18 months.

“The cash outflow for capital spending will remain high as payments to creditors for past capital expenditure are made over the next 12-18 months. Such payments along with additional capital spending in the digital services business will constrain any reduction in net borrowings until fiscal 2019", the Moody’s report added.

On 3 November, the company said it planned to raise Rs5,000 crore debt through private placement of non-convertible debt instruments.

Secondly, recent data from the Telecom Regulatory Authority of India showed that RIL’s telecom unit, Jio, witnessed a slowdown in subscriber additions. In August, the company added 4.09 million customers, its second lowest monthly incremental growth since September 2016.The company has a total base of 132.68 million.

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