Reliance Erases Early Gains, Falls 0.8% Despite Trump’s $300 Billion Texas Refinery Deal Announcement

Shares of Reliance Industries Limited reversed early gains in Wednesday’s session, slipping into negative territory despite a major investment announcement involving a proposed refinery project in the United States.

The stock was trading at ₹1,397.30 at around 11:48 AM IST, down ₹11.50 or 0.82% from the previous close of ₹1,408.80. The decline shows a reversal of nearly 2.6% from the intraday high of ₹1,434, reached shortly after the market opened.

During the session, the stock touched an intraday low of ₹1,395.10. Trading volumes on the NSE crossed 9.75 million shares, thus indicating active participation by institutional and retail investors.

Trump Announces Texas Refinery Partnership

The stock initially rallied in early trade after Donald Trump announced what he described as a “historic partnership” with Reliance to build America First Refining, a large-scale refinery project in Brownsville, Texas.

According to details shared during the announcement:

• The project is expected to have an economic impact of around $300 billion over several years.
• The facility will be designed to process around 1.2 billion barrels of American light shale oil.
• It would represent the first major new refinery built in the United States in nearly 50 years.
   

Trump publicly thanked Mukesh Ambani for the “tremendous investment,” which briefly pushed Reliance shares up nearly 2% during the opening session.

Why the Stock Turned Lower

Despite the positive headline, the stock lost momentum as several factors weighed on sentiment.

1. Profit Booking Near Technical Resistance: Market participants noted that Reliance encountered strong technical resistance near the ₹1,435 level. Traders used the early rally triggered by the Texas refinery announcement to lock in profits, leading to a reversal in intraday momentum.

2. Broader Market Weakness: The broader market also contributed to the decline. The Nifty 50 slipped below the 24,200 support level around 10:30 AM, triggering a risk-off sentiment across index heavyweights, including Reliance. As one of the largest-weighted stocks on the Nifty, Reliance often mirrors broader institutional flows during volatile sessions.

3. Concerns Around Domestic LPG Diversion: Market participants are also closely watching the potential financial implications of increased domestic energy supply obligations. Recent directives to boost LPG output for domestic consumption could lead to a reallocation of refinery output. Thus, raising concerns that higher-margin export products may be diverted to the domestic market, potentially affecting Gross Refining Margins (GRMs) in the near term.

4. Long-Term Deal vs Short-Term Risks: While the Texas refinery project represents a long-term strategic investment, with construction expected to begin around Q2 2026, investors remain focused on near-term global risks. Particularly, the ongoing 11-day geopolitical conflict in West Asia which has heightened volatility in energy markets.

Recent Stock Performance

Despite the intraday pullback, Reliance shares have shown mixed performance in recent sessions.

• Last 5 trading sessions: The stock remains up around 1.5%, supported by earlier developments, including a 30-day U.S. waiver for Russian oil imports.
• Year-to-date (2026): Reliance shares are down roughly 11%, as a result of broader corrections in Indian equities and volatility in global energy markets.

With a market cap of over ₹18 lakh crore, Reliance continues to remain one of the most influential stocks on Dalal Street. 

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