Reliance Industries is one of the major losers today. The stock has plunged below the promoter's warrant conversion price of Rs 1,402 per share. So, what are the reasons for the fall in this market bellwether?

 Here is a verbatim transcript of Sajeet Manghat’s comments on CNBC-TV18. Also watch the accompanying video. 

Reliance Industries has fallen below promoter's warrant conversion price of Rs 1,402 per share. The stock had touched a 52-week high at Rs 3,298 per share.

So, what are the reasons for the fall in this market bellwether? FIIs, or foreign institutional investors, have lost conviction in this stock. Delays in execution are the main reason for the stock’s underperformance. Also, refinery and gas production delays have reduced execution premium.

Q2 is expected to be a challenging quarter for the company. Petrochemical margins are holding steady as of now and may decline in 2009. While margins in the polymer segment are steady, the polyester segment is under stress.

Gross refining margins, or GRMs, are expected to decline significantly in Q2. Singapore GRMs is seen at around USD 8.2 per barrel in Q2 as against nearly USD 11 per barrel in Q1. RIL's Q2 GRMs are seen at around USD 10 per barrel versus USD 15.4 per barrel in Q1. Also, net sales and net profit are expected to decline QoQ.