Reliance shares jump 7% on US-India trade deal, Sikhya acquisition
What's the story
Reliance Industries Limited (RIL) witnessed a massive surge in its share price today, gaining as much as 7% in intraday trading. The surge came as markets rallied on the India-US trade deal and the acquisition of Sikhya Entertainment Private Limited by RIL's subsidiary. The stock jumped to ₹1,489 per share on BSE in early trade today, reducing year-to-date losses to 8%.
Market performance
Reliance Industries drives rally in Indian stock market
The broader Indian stock market also witnessed a rally today, with the benchmark indices Sensex and Nifty rising by nearly 3%. Reliance Industries emerged as the biggest contributor to this rally. The surge in share price comes amid optimism over the India-US trade deal announced last night, which reduced US tariffs on Indian goods from 50% to 18%.
Trade agreement
India-US trade deal announced after Modi-Trump call
The India-US trade deal, announced by US President Donald Trump after a call with Prime Minister Narendra Modi, has major implications for both countries. As part of the agreement, India has agreed to purchase petroleum, defense goods, electronics, pharmaceuticals and telecom products as well as aircraft from the US. The deal is expected to boost India's economy and strengthen its strategic ties with the US.
Crude import
Reliance halts Russian crude imports amid US pressure
Reliance Industries was the largest importer of Russian crude oil to India, accounting for nearly 45% of the country's total imports. However, the company halted Russian crude imports in January for the first time since 2022. This decision came amid pressure from Trump on India to stop purchasing crude oil from Moscow and was seen as a strategic move amid changing geopolitical dynamics.
Acquisition details
RIL subsidiary acquires Sikhya Entertainment stake for ₹150 crore
In another development, Reliance Strategic Business Ventures, a wholly-owned subsidiary of Reliance Industries, acquired a 50.1% equity stake in Sikhya Entertainment Private Limited on February 2. The deal is a mix of primary and secondary transactions for an aggregate cash consideration of ₹150 crore. This acquisition will further strengthen Jio Studios's position in the media and entertainment industry.