 "RIL denies report on Russia oil purchase, share price tumbles over 4%")
Shares of Reliance Industries tumbled on Tuesday, posting its biggest single-day decline in 19 months, amid controversy over its purchase of Russian oil and profit-booking after recent gains. The stock of Reliance Industries declined 4.4 per cent and ended the session at ₹1,508.90, its biggest one-day decline since June 4, 2024. Reliance Industries’ market capitalisation declined by ₹95,407 crore.
A news report last week claimed that at least three tankers carrying Russian crude oil are indicating Reliance Industries’ plant in India’s west coast as their next destination. Reliance Industries denied the report. And an updated news report on Tuesday said that the Russian oil cargo earlier linked to Reliance had been discharged elsewhere.
The decline in Reliance Industries was partly attributed to profit-booking after it hit new highs. The stock had hit a new record high in Monday’s session. And in 2025, the stock had gained 29 per cent against Nifty’s gain of 10.5 per cent.
“Overall sentiments in the markets are weak, and there is profit-booking across largecaps. And news reports on Russian oil purchases and US President Donald Trump’s renewed threat of additional sanctions are adding to uncertainty and selling pressure, even as the stock recently hit new highs. We are bullish on Reliance. Any negative news-flow will lead to panic-selling if it comes at a time when the overall sentiment is weak,” said Siddhartha Khemka, head of research - wealth management, Motilal Oswal Financial Services.
Analysts' warnings about increased competition in the retail sector, and CLSA's decision to drop Reliance from its portfolio also weighed on sentiment. The institutional brokerage and investment group, in a strategy note on Tuesday, said it is boosting its consumption exposure by adding Eternal and DMart to its India-focus portfolio, and exiting Reliance and Nestle. Concerns about the impact of a weak overall consumption trend, and increasing competition in the retail sector also weighed on sentiment. Citi, in a note on Tata group’s Trent, flagged concerns that the intense competition in the sector is eroding incumbents’ market share. Reliance’s retail business is a big contributor to its overall market capitalisation.
Analysts said they remain bullish on the company despite the near-term headwinds.
“The contribution of oil, gas, and petrochemicals to Reliance’s revenue is declining. The company is smartly diversifying into FMCG (fast-moving consumer goods), new energy, and digital businesses. And there is no need to worry about the long-term prospects,” said Chokkalingam, founder of Equinomics.