Reliance, Adani Stocks Jump Up to 13% After India-US Deal

Reliance Industries and Adani Group stocks jumped after the announcement of a landmark India-US trade deal, which lowered tariffs and signalled a shift in global energy sourcing. Reliance Industries jumped around 3.42% to close at ₹1,438, while Adani Group stocks climbed as much as 13% in a single session.

The rally was broad-based and caught short-sellers off guard, coming at a time when foreign investors had remained heavily cautious on Indian equities. What exactly in the deal triggered such a strong market response?

What Drove the Market Rally After the India-US Deal?

The immediate trigger was the announcement by Donald Trump that reciprocal tariffs on Indian goods would be cut sharply, from 50% to 18%. The move brings India’s tariff levels closer to those of other Asian exporters and reduces uncertainty for companies dependent on global trade.

The deal also includes the removal of an additional duty linked to India’s purchase of Russian crude oil. In parallel, the US signalled that India could step up crude imports from the USA and potentially resume purchases from Venezuela. Together, these measures improved visibility in trade costs, export competitiveness and energy sourcing.

Market participants noted that the announcement landed at a sensitive time. Foreign institutional investors had sold Indian equities worth about $34 billion over the past 16 months and were holding high short positions in derivatives. The sudden improvement in trade clarity triggered a short-covering rally, pushing the Sensex up by more than 4,000 points during the session.

With the US remaining India’s largest export destination, accounting for about $87 billion, or roughly 18% of total goods exports. The tariff rollback was seen as a meaningful sentiment booster.

Why Are Adani Group & Reliance Stocks Among the Gainers?

Adani Group companies emerged as the strongest performers following the announcement. Adani Green Energy led the gains, followed by Adani Enterprises, which rose around 10.58%. Adani Energy Solutions, Adani Ports and SEZ and Adani Total Gas were also trading 6-8% higher.

Brokerages pointed to the group’s exposure to infrastructure, energy logistics and utilities as key reasons for the rally. Analysts said the trade agreement strengthens the broader theme of energy and infrastructure cooperation between India and the US. Improved bilateral ties could support investment flows into ports, power transmission and energy transition projects, where Adani group have a significant presence.

For Reliance Industries, the biggest potential upside lies in energy sourcing. Trump said India would reduce purchases of Russian crude and buy more oil from the US and Venezuela, with the arrangement taking effect immediately.

India has not imported Venezuelan crude since May 2025, but past data shows that Indian refiners imported an average of about 70,000 barrels per day (BPD) from Venezuela in 2024, with volumes crossing 150,000 bpd in some months.

Venezuelan crude tends to be cheaper due to its heavier composition. Reliance’s refineries are positioned as a direct beneficiary if such imports resume due to their capability of processing extremely heavy and sour grades.

What Does This Mean for Investors Going Ahead?

Beyond the immediate stock-specific gains, market participants see the deal as a potential turning point for foreign portfolio flows.

Sectors with higher foreign ownership, including financial services, telecom, transport and healthcare, may benefit if risk appetite improves. At the same time, capital goods, IT services and power utilities could see renewed interest as tariff doubts fades.

For now, the sharp rally in Reliance and Adani stocks reflects a combination of short-covering and a reassessment of trade and energy risks. Investors will be watching how quickly the deal translates into policy action, energy flows and follow-up negotiations, as both governments have indicated that further phases of engagement are likely.

Sources:

ET

Mint

BusinessToday