Reliance share price jumps 7% after this acquisition update, India-US trade deal optimism — Time to buy?

Shares of Reliance Industries zoomed 7% in intraday trading on Tuesday, February 3, amid a broader rally in the Indian stock market and the company's subsidiary's acquisition of Sikhya Entertainment Private Limited.

Reliance Industries share price rallied 7.11% to ₹1489 apiece on the BSE in the morning trade, cutting the year-to-date (YTD) losses to 8%. As of 11.30 am, the stock of India's most valuable company was higher by 4% at ₹1447.35.

The Indian stock market's benchmark indices — Sensex and Nifty — jumped almost 3% today, with Reliance emerging as the biggest index contributor.

India-US trade deal impact

India-US trade deal announced last night lowers the US tariffs on Indian goods to 18% from 50%, removing a key overhang on the Indian stock market.

US President Donald Trump announced the deal on social media following a call with Indian Prime Minister Narendra Modi. He noted that India agreed to halt Russian oil purchases and lower trade barriers on US exports.

As part of the deal, India has agreed to buy petroleum, defence goods, electronics, pharma and telecom products as well as aircraft from the US, a government official told Reuters.

"Even though India has reduced its purchase of crude oil from Russia in recent months, it is unlikely to cease all purchases immediately, which could be disruptive to India’s economic growth," Moody's was quoted as saying by Reuters.

Reliance Industries was the dominant buyer of Russian crude imports to India, accounting for ~45%. The company, however, paused Russian crude imports in January for the first time since 2022, as per a Bloomberg report amid pressure from Trump on India to halt crude oil purchases from Moscow.

Why is Reliance Industries stock rising?

Commenting on the rise in Reliance Industries shares today, Harshal Dasani, Business Head, INVasset PMS, said the recent move appears to reflect a broader market re-rating linked to India–US strategic engagement.

“While there is speculation that purchases of discounted Russian crude could be curtailed under evolving geopolitical alignments, the market seems to be discounting this risk as manageable. Reliance has consistently demonstrated flexibility in crude procurement, and India’s overall import basket remains diversified enough to cushion the impact of any single supply adjustment,” he said.

As a result, near-term refining margin volatility is being viewed as cyclical rather than structural, Dasani opined, adding that the company could benefit from the India-US trade deal that strengthens the longer-term narrative around energy cooperation, technology partnerships, and capital inflows.

Reliance's Jio Studios acquisition move

In another development, Reliance Strategic Business Ventures, a wholly owned subsidiary of Reliance Industries, on February 2, acquired a 50.1% equity stake in Sikhya Entertainment Private Limited.

Sikhaya is one of India’s most globally recognised and awarded production houses.

The deal involves a combination of primary and secondary transactions, for an aggregate cash consideration of ₹150 crore. This acquisition enables Jio Studios, the media and content arm of RIL, to further consolidate its pre-eminent position in the media and entertainment sector, the company's press filing said.

(This is a developing story. Check back for updates.)

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