Shares of Reliance Industries Limited (RIL) witnessed a sharp sell-off on Tuesday, tumbling 5% in a dramatic intraday fall. The stock hit a low of Rs 1,497.05 on the Bombay Stock Exchange (BSE), marking its most significant single-day decline since June 4, 2024. The plunge was triggered by market reaction to a news report concerning Russian oil shipments, which the conglomerate has vehemently denied.
Denial of Russian Oil Shipments Sparks Market Rout
The sharp decline followed a Bloomberg report that claimed three vessels carrying Russian crude were heading towards RIL's massive Jamnagar refinery. The company issued a swift and firm denial on social media platform X. Reliance clarified that its Jamnagar refinery has not received any cargo of Russian oil in approximately the last three weeks and is not expecting any such deliveries in January.
In its statement, RIL expressed strong disappointment, stating, "We are deeply pained that those claiming to be at the forefront of fair journalism chose to ignore the denial by RIL of buying any Russian oil to be delivered in January and published a wrong report tarnishing our image." The original Bloomberg report had cited data from analytics firm Kpler.
Heavy Losses and Broader Market Impact
The investor reaction was severe and immediate. RIL shares slipped below their 50-day moving average, a key technical indicator watched by traders. The sell-off erased more than Rs 1 lakh crore from the company's market capitalisation in a single session.
Furthermore, Reliance emerged as the biggest drag on the benchmark Nifty 50 index. The heavyweight stock alone pulled the index down by approximately 82 points, contributing significantly to the day's broader market weakness. Despite the company's public clarification, trading volumes remained heavy with the stock firmly in negative territory throughout the session.
Context of India's Russian Oil Imports
This incident occurs against a backdrop of shifting global oil trade dynamics. Following the Russia-Ukraine war, Reliance had become one of India's largest buyers of discounted Russian crude. However, according to an Economic Times report, the company has since paused these purchases.
Data indicates a broader slowdown. India's oil imports from Russia fell to a three-year low of around 1.2 million barrels per day in December, a drop of roughly 40% from the peak of nearly 2 million barrels per day in June. This decline is attributed to tighter US and European Union sanctions on Moscow. Analysts, citing a Reuters report, expect imports to fall further in January, partly due to Reliance's decision to halt intake.
The episode underscores the sensitivity of major blue-chip stocks to news flow regarding their operational dealings, especially in a geopolitically charged environment. It also highlights the substantial market value that can be wiped out based on speculative reports before official clarifications can fully assuage investor concerns.
