Reliance jumps 7% on US-India trade deal

On February 3, 2026, shares of Reliance Industries (RIL) surged by as much as 7.12% in intraday trade, hitting a high of ₹1,489.50 on the NSE. This massive rally, which helped the stock recover a significant portion of its 2026 losses, was triggered by the surprise announcement of a landmark India-US Trade Deal.

1. The “Venezuela Wildcard” for Refining

The primary driver for Reliance’s outperformance was President Trump’s explicit mention of Venezuela as a replacement for Russian oil.

• Complex Refining Advantage: Reliance’s Jamnagar refinery is one of the few in the world capable of processing extremely “heavy and sour” crude from Venezuela.
• Margin Expansion: Venezuelan crude is typically cheaper than lighter benchmarks. Access to this feedstock—after a near-total halt since May 2025—is expected to significantly boost Reliance’s Gross Refining Margins (GRMs).
• The Russian Exit: While the deal requires India to stop buying Russian oil (where Reliance was a top buyer), analysts noted that Reliance had already proactively paused Russian imports in January 2026, signaling its readiness for this pivot.

2. Removing the “Tariff Overhang”

The deal removes a major financial threat that had weighed on the stock since late 2025.

• 50% to 18%: The US will slash the reciprocal tariff on Indian goods from a peak of 50% down to 18%.
• Punitive Duty Removal: Importantly, the additional 25% punitive tariff previously imposed on India for its Russian oil engagement has been scrapped, clearing the way for smoother exports of Reliance’s refined products and textiles to the US.

3. Strategic Acquisition: Sikhya Entertainment

Complementing the macro-economic news, Reliance’s subsidiary, Reliance Strategic Business Ventures, announced a key acquisition on February 2, 2026.

• The Deal: Acquired a 50.1% stake in Sikhya Entertainment (the Oscar-winning house behind The Elephant Whisperers) for ₹150 crore.
• Jio Studios Synergy: The move is seen as a major boost for Jio Studios, positioning it to produce high-quality, “globally resonant” content for a worldwide audience.

4. Q3 FY26 Earnings Recap

The rally also provided a much-needed “reset” after the company’s Q3 FY26 results (released in mid-January) initially underwhelmed investors:

• Consolidated Profit: Stood flat at ₹18,645 crore.
• Revenue: Rose 11% YoY to ₹2.69 lakh crore.
• Digital Lead: Jio Platforms was the star performer with a 16.4% EBITDA jump, while Reliance Retail margins hit a 13-quarter low due to “quick commerce” competition and a festive season shift.

Conclusion: A Strategic Re-Rating

The 7% jump reflects a broader market re-rating of Reliance. By securing a clear path to Venezuelan oil and escaping US tariff penalties, the company has transformed a geopolitical risk into a competitive advantage. For investors, the focus now shifts from “surviving” US pressure to “thriving” in a new energy-and-tech partnership between Washington and New Delhi.