RIL Shares In Action as Trump Names Reliance in Historic $300 billion US Refinery Plan; Stock Up 27% From Lows

Shares of Reliance Industries Ltd opened 1% higher in the market on Wednesday after US President Donald Trump claimed that the oil major will participate in building a new refinery in Texas as part of a massive $300 billion investment push to boost US energy production.

In a post on his social media platform Truth Social, Trump said, "America is returning to REAL ENERGY DOMINANCE! Today, I am proud to announce that America First Refining is opening the FIRST new U.S. Oil Refinery in 50 YEARS in Brownsville, Texas. THIS IS A HISTORIC $300 BILLION DOLLAR DEAL- THE BIGGEST IN U.S. HISTORY, A MASSIVE WIN for American Workers, Energy, and the GREAT People of South Texas! Thank you to our partners in India, and their largest privately held Energy Company, Reliance, for this tremendous Investment."

However, Reliance Industries has not yet made any official disclosure to stock exchanges regarding such an investment. Investors and market participants are waiting for any formal clarification from the company.

Trump's Energy Investment Plan

In his post Trump said the project was made possible due to the "America First Agenda", which he said streamlined permits and reduced taxes to attract global investments back to the United States.

According to the statement, the proposed refinery at the Brownsville port will boost American energy production, generate billions of dollars in economic impact and potentially become one of the cleanest refineries in the world.

Reliance focuses on domestic energy supply

While there has been no official announcement regarding the Texas refinery project, Reliance Industries on Tuesday informed stock exchanges about its ongoing efforts to ramp up India's energy supply.

The company said it is taking proactive steps to increase LPG production from its refining and petrochemical complexes in Jamnagar, Gujarat.

Reliance stated, "At the same time, natural gas produced from the KG-D6 Basin will be diverted to support supply to priority sectors, in line with national energy priorities and Government guidelines. For Reliance, India's energy security and the well-being of millions of Indian families always come first. We will continue to work closely with the Government of India and remain fully compliant with all national guidelines and allocation priorities, ensuring that energy supplies reach the sectors and communities that need them the most."

Reliance Share Price Performance

As of 9:30 am, Reliance shares were trading at Rs. 1424.90 apiece on the NSE, rising 1.14% from the previous close at the time of writing.
Over the last five trading days, Reliance shares have gained around 3.75%, and the stock is currently about 27% higher than its 52-week low.

The spike in the counter was short-lived, and it slipped into the red zone quickly after. As of around 10:50 am, Reliance shares were trading at Rs. 1400.20, down by 0.60%.

Buy Reliance Shares?

Brokerage firm JM Financial, in a report dated March 5, maintained a 'buy' recommendation on Reliance Industries Ltd and set a target price of Rs. 1730, implying a potential upside of about 28.6% from current levels.

The report mentioned, "Spike in crude/LNG price doesn't hit RIL's O2C business earnings; instead RIL to see nearterm benefit due to jump in diesel crack and likely rise in petchem margin: We believe the recent correction in RIL's share price is overdone (4% this week and 8% in last 1 month after escalation in Middle East tensions) as it doesn't get negatively impacted due to the recent spike in crude and LNG prices. "

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