Reliance Industries Shares Crash 5%: The Russian Oil Rumor That Wiped Out ₹1 Lakh Crore

Reliance Industries shares fall 5%! Over Rs 1 lakh cr eroded from M-cap

It was a stark reminder of just how fragile market sentiment can be. On Tuesday, January 6, 2026, Reliance Industries shares plunged by a staggering 5% on the BSE, wiping out a colossal over ₹1 lakh crore from its market capitalization in a matter of hours . The trigger? A single news report that the company deemed not just wrong—but “blatantly untrue and damaging” .

This financial freefall wasn’t just a blip on the radar for India’s most valuable company. It sent ripples through the entire Nifty 50 index, showcasing the immense weight Reliance carries in the Indian stock market. But what was the rumor that caused such panic, and why did investors react so violently even after a clear denial?

Table of Contents

The Trigger: A Bloomberg Report on Russian Oil

The entire episode began with a report from the global financial news giant, Bloomberg. The report, citing data from the energy analytics firm Kpler, alleged that three vessels loaded with Russian crude oil were en route to Reliance’s massive Jamnagar refinery in Gujarat .

This seemingly simple piece of information landed like a bombshell in the market. Why? Because India’s relationship with Russian oil has been a delicate geopolitical balancing act. While the country has been a major buyer of discounted Russian crude since the Ukraine conflict began, any sudden shift or controversy can spook investors who fear potential Western sanctions or reputational damage for Indian conglomerates.

Reliance Industries shares and the ₹1 Lakh Crore Erosion

The market’s reaction was swift and brutal. Following the report, Reliance shares, which had been trading around ₹1,593 on January 5th, crashed to approximately ₹1,513 at their intraday low on January 6th .

This sharp decline translated into a massive loss of shareholder wealth. According to market data, the company’s market capitalization, which stood at a lofty ₹21.35 lakh crore just a day before, evaporated by over ₹1 lakh crore [[10], [19]]. To put that in perspective, that’s a sum larger than the GDP of many small nations, vanishing in a single trading session.

The impact was so severe that both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) were compelled to seek an official clarification from Reliance Industries regarding the market-moving report .

The Company Response: Calling the Claim “Untrue”

Reliance Industries didn’t hold back in its response. The company issued a swift and unequivocal statement, calling the Bloomberg report “blatantly untrue and damaging” .

In a detailed clarification, Reliance provided a clear timeline to debunk the claims:

  • The Jamnagar refinery, the world’s largest, has not received any cargo of Russian oil for the past three weeks [[20], [23]].
  • Furthermore, the company stated it does not expect to receive any Russian crude in January 2026 [[21], [25]].

This direct and factual rebuttal was meant to calm the markets and reassure investors of the company’s transparent and compliant operations.

Why the Denial Wasn’t Enough for Investors

Despite the strong and clear denial, investor sentiment remained weak throughout the day . This lingering skepticism can be attributed to several factors:

  1. Geopolitical Jitters: The mere association with Russian oil, regardless of its accuracy, creates a perception of risk in the current global climate.
  2. Information Asymmetry: In the high-speed world of algorithmic trading, the initial negative news often has a more powerful and immediate impact than a subsequent correction.
  3. Profit Booking: The sharp fall may have also triggered a wave of profit-booking by investors who had been riding the stock’s long-term gains, using the rumor as an exit opportunity.

The Broader Impact on Indian Markets

Reliance Industries is not just any company; it’s a bellwether for the entire Indian economy. A significant move in its stock price has an outsized effect on benchmark indices. On this particular day, the 5% crash in Reliance shares was a major factor dragging down the Nifty 50 index, highlighting the company’s systemic importance in the Indian financial landscape .

This event also underscores a critical vulnerability: the market’s susceptibility to unverified news, especially on sensitive geopolitical topics. It’s a cautionary tale for both investors and companies about the power of a single headline.

Conclusion

The dramatic fall in Reliance Industries shares serves as a powerful case study in modern market dynamics. It shows how a single, disputed report can trigger a massive loss of value, even when a company’s fundamentals remain strong and its denials are firm. For investors, the key takeaway is the importance of looking beyond the initial panic and focusing on official company statements and long-term strategy. For the market as a whole, it’s a reminder of the need for greater resilience against the volatility of the 24-hour news cycle.

Sources

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