Home / Business and Economy / Reliance Shares Tumble Amid Russian Oil Delivery Halt
Reliance Shares Tumble Amid Russian Oil Delivery Halt
6 Jan
Summary
- Reliance Industries' shares fell 3.7% on Tuesday.
- The company confirmed no Russian crude oil deliveries in January.
- US tariff threats on India impact Russian oil purchases.
Reliance Industries (RIL) saw its share price drop significantly by 3.7% on Tuesday, hitting an intraday low of Rs 1,518.30. Trading volumes surged, indicating heightened market activity following the company's announcement that it has not received Russian crude oil cargoes in the past three weeks and anticipates no further deliveries in January. This situation arises amidst growing trade tensions, with the US reportedly considering raising tariffs on India over its continued purchases of Russian oil.
While RIL denied a report suggesting Russian oil vessels were en route to its refinery, the cessation of these deliveries marks a notable shift. The company, previously a major buyer of Russian crude, now faces external pressures impacting its supply chain. This development has contributed to RIL being the third-largest drag on the Nifty 50 index, pulling down its overall performance.
Despite recent declines over the past week and two weeks, RIL's stock has shown resilience on longer timeframes. It remains above key exponential moving averages for medium to long terms, indicating underlying strength. However, the immediate impact of the Russian oil situation and geopolitical factors is reflected in its short-term price performance.
