Reliance Shares Tumble After Denial of Russian Crude Report

Reliance Industries Limited (RIL) shares witnessed a sharp sell-off on Tuesday, falling nearly 5% to an intraday low of Rs 1,497.05 on the BSE after the company strongly refuted a Bloomberg report linking it to incoming Russian crude shipments. The company described the report as “blatantly untrue,” triggering negative investor sentiment and heavy trading volumes.

Biggest Intraday Decline Since June 2024

The fall marked Reliance’s steepest intraday decline since June 4, 2024. During the session, the stock slipped below its 50-day moving average, wiping out more than Rs 1 lakh crore in market capitalisation. By the close of trade, Reliance shares settled 4.30% lower at Rs 1,509.55 on the BSE.

Major Drag on Benchmark Indices

Reliance Industries emerged as the single largest drag on the Nifty 50 index, contributing approximately 82 points to the benchmark’s decline. The stock’s weakness added to broader market pressure, amplifying losses across key indices.

Company Issues Strong Clarification

In an official statement shared on X, Reliance clarified that its Jamnagar refinery has not received any Russian crude cargo in the past three weeks and does not expect any deliveries from Russia in January. The company expressed disappointment that its earlier denial was overlooked, stating that the publication of the incorrect report had unfairly damaged its reputation.

Background of the Disputed Report

The Bloomberg report, citing data from Kpler, had claimed that three vessels carrying Russian crude oil were en route to Reliance’s Jamnagar refinery. While Reliance had previously been India’s largest buyer of discounted Russian oil following the Russia-Ukraine conflict, the company has since paused such purchases.

Impact on India’s Russian Oil Imports

According to a Reuters report, Reliance’s decision to halt Russian crude intake is expected to further reduce India’s oil imports from Russia in January. The report noted that Russian oil flows to India have already declined due to tighter U.S. and European Union sanctions, with imports dropping to a three-year low of around 1.2 million barrels per day in December, nearly 40% lower than the June peak of about 2 million barrels per day.

Investor Reaction and Market Sentiment

Despite the company’s clarification, Reliance shares remained under pressure throughout the trading session. High trade volumes indicated cautious investor sentiment as market participants reacted to the news flow alongside broader market weakness.

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Sorit Chaudhary

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