Shares of Reliance Industries fell 4 per cent in morning trade on Monday after the company's June quarter earnings failed to enthuse investors.
The market heavyweight stock declined 3.95 per cent to ₹2,404 on the BSE, after a weak start early in the trade. At the NSE, it went lower by 3.98 per cent to ₹2,403.35 apiece.
Fall in Reliance shares were instrumental in dragging down the benchmark indices.
The 30-share BSE benchmark was trading 400.84 points or 0.71 per cent lower at 55,671.39, and the NSE Nifty quoted 109.60 points or 0.66 per cent down at 16,609.85.
Reliance Industries on Friday reported a 46 per cent jump in its June quarter net profit on bumper earnings from oil refining and an uptick in telecom and retail businesses.
"RIL's results, though impressive on the telecom and retail front, fell slightly below expectations in the refining space," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The oil-to-retail-to-telecom conglomerate's consolidated net profit stood at ₹17,955 crore, or ₹26.54 a share, in April-June.
Sequentially, net profit was up 11 per cent but lagged analyst estimates who had factored that the company would have captured the biggest discount available on Russian crude and exported all fuel when margins peaked.