Reliance Share Price Rises 2% as India Secures Waiver to Buy Russian Crude Oil

Reliance Industries Ltd (RIL) Share Price Surges 2.5% as US Offers Temporary Exemption for Indian Refiners to Buy Russian Oil

On March 6, the share price of Reliance Industries Ltd (RIL) rose by 2.5% for its second consecutive day of gains following the announcement by the US Treasury Department. The department has granted a temporary 30-day exemption for Indian refiners to purchase Russian oil, aiming to stabilize global energy markets amidst escalating tensions in the Middle East.

The US Secretary of the Treasury, Scott Bessent, called India a vital ally of the United States and expressed expectations for New Delhi to increase its import of American oil. This temporary solution is intended to ease the strain created by Iran's efforts to hold global energy supplies hostage.

Market analysts attribute the recent increase in RIL shares to China's suspension of fuel exports amid tensions between the US and Iran, enhancing refining margins for RIL's facility in Jamnagar. Analysts believe that the previous decline in the stock price was overdone and that the company may gain from escalating crude oil prices due to the current Iran conflict and disturbances in the Strait of Hormuz.

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JM Financial noted that the recent 8% dip in Reliance shares in the last month was unwarranted. The brokerage anticipates that the company will gain in the short term from higher diesel cracks and a potential increase in petrochemical margins. Assuming diesel crack sustains at USD 30/bbl, RIL's Gross Refining Margin (GRM) could rise by USD 4-5/bbl.

Reliance Share Price Today

The stock opened at ₹1,392.25 on the BSE, touching an intraday high of ₹1,424.10 and an intraday low of ₹1,390.10. According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Reliance shares have witnessed strong positive traction over the last two sessions, erasing initial weekly losses and now placed with weekly gains of over 2%.

The stock has reclaimed its 20-DEMA, and considering the constructive setup on both daily and weekly charts, prices may extend the upmove towards 1,460 levels. On the downside, 1,380 is seen as immediate support.

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