Reliance Industries Share Price: As soon as the market opened, the company’s shares started trading in the green and a gain of more than 2% was recorded…
highlights
- Shares of Reliance Industries are in constant discussion these days.
- There has been a good rise in the stock in recent times, although there was light profit booking in between.
- Three big news regarding the company are attracting the attention of the market.
Reliance Industries Share Price: Shares of Mukesh Ambani-led giant Reliance Industries saw a rise on Wednesday. The company’s shares rose nearly 2% to the day’s high of ₹1,434 on the BSE. This surge in shares came after the statement in which US President Donald Trump said that Reliance Industries (RIL) can partner in the first new oil refinery project to be built in America in 50 years. However, Reliance Industries has not yet officially confirmed Trump’s statement.
Shares of Reliance Industries witnessed a rise from early trading on Wednesday. As soon as the market opened, the company’s shares started trading in the green and registered a gain of more than 2%, while there was a sharp decline in Sensex and Nifty. After this surge, the shares were seen trading above the support level of Rs 1,422-1,423. The impact of two important news is visible behind this rise in the company’s shares.
Claim of $300 billion project
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Posting on his social media platform Truth Social late Tuesday night, Trump said that a new oil refinery will be established in Texas. The estimated cost of this project is said to be 300 billion dollars, which he described as the biggest deal in American history.
According to Trump, this refinery will be built at the Port of Brownsville and will be developed by America First Refining. He said that India’s largest private company Reliance Industries will support the investment in this project.
American energy production will get a boost
Trump said in his statement that this refinery to be built in Texas will be a big step for the American energy sector. According to him this project-
- Will increase fuel supply to American markets
- will strengthen national energy security
- will increase energy production
- Will have an economic impact of billions of dollars on the American economy
- Apart from this, he said that this project can also strengthen American energy exports at the global level.
New refinery will be built after 50 years
Trump said that no new oil refinery has been built in America in the last 50 years, so this project is being considered historic. The Port of Brownsville, Texas is a major shipping hub on the US Gulf Coast, supplying energy products to domestic and international markets.
Decision to increase LPG production in Jamnagar Refinery
On the other hand, the company has also made an important announcement. Reliance said that it is working on a plan to increase the production of cooking gas (LPG) to the maximum level at its Jamnagar Refinery complex. This step has been taken at a time when global energy markets are witnessing volatility due to ongoing tensions in West Asia.
The company said that ensuring uninterrupted supply of LPG to domestic consumers is a national priority. In this direction, efforts are being made to increase LPG production by optimizing refinery operations.
Update on gas supply from KG-D6
Reliance also said that natural gas produced from KG-D6 Basin will be diverted to priority areas. This step is being taken keeping in mind the instructions of the government and the energy needs of the country.
According to the company, its team is working 24 hours to improve refinery operations and maintain stable fuel supply in the domestic market.
What should be the strategy on Reliance Share?
At present, the shares of Reliance Industries are in constant discussion. There has been a good rise in the stock in the last few days, although a day ago some profit booking was also seen. There are two-three big news regarding Reliance in the market, which are impacting investors’ sentiments.
According to Sajit Manghat, Senior Executive Editor of ET NOW Swadesh, Trump’s statement created a positive sentiment among investors about Reliance, due to which the shares witnessed a rise. However, investors are waiting for official confirmation on this partnership from the company.
Sajit Manghat said that usually companies in India import crude oil and make new products in the refinery here and export them around the world. If the refinery project in America goes ahead, it could be an opportunity for global business expansion for Reliance.
Therefore, the most important thing for investors at the moment will be how much Reliance invests in this American project and how much benefit the company can get from it in future. Overall, there may be some cost pressure for Reliance in the short term, but new opportunities also appear to be emerging in the long term.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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