Reliance Power shares have continued their downward trend, hitting the 5 percent lower circuit for the third consecutive session on October 7. This decline comes as investors began to lock in profits, with the stock now trading approximately 11 percent below its recent 52-week high of ₹53.64, which was achieved just a week ago.
Just a month prior, the stock witnessed a remarkable surge of over 60 percent, largely driven by heightened investor enthusiasm following the announcement that Reliance Power, led by Anil Ambani, had successfully eliminated its debt. However, the impressive rally was met with profit-taking by investors, coinciding with a broader market sell-off that added further pressure to the stock’s performance.
Investor sentiment for Reliance Power improved significantly on September 18, following the news that the company had been released from its corporate guarantees and obligations related to the outstanding debt of its subsidiary, Vidarbha Industries Power Limited (VIPL). This release involved an impressive debt amount of ₹3,872.04 crore, relieving a significant financial burden from the company’s shoulders.
In conjunction with this development, Reliance Power announced that it had successfully resolved all disputes with CFM Asset Reconstruction Private Limited. Under this agreement, 100% of VIPL’s shares were pledged to CFM, facilitating the release of the corporate guarantee that had previously been provided by Reliance Power.
In a further boost to its portfolio, Reliance Power secured a substantial battery storage contract of 500 MW/1000 MWh from the Solar Energy Corporation of India (SECI). This initiative positions Reliance Power as a key player in one of the world’s largest standalone battery energy storage projects, enhancing its role in the rapidly evolving renewable energy sector.
Reliance Power Stock Performance
As of now, Reliance Power shares are trading favorably above their 5-day, 50-day, 100-day, and 200-day moving averages (DMA). Notably, the Relative Strength Index (RSI) stands at 79, indicating that the stock may be entering overbought territory. This technical indicator suggests that a correction could be on the horizon, as stocks often retreat after experiencing such strong upward momentum.
At 1:22 PM, Reliance Power’s shares touched the 5 percent lower circuit, trading at ₹48.40 on the National Stock Exchange (NSE). Despite this recent downturn, the stock has impressively surged approximately 102 percent year-to-date, significantly outperforming the Nifty Index, which recorded a more modest 15 percent return during the same timeframe.
Over the past 12 months, Reliance Power’s stock has skyrocketed by 172 percent, effectively more than doubling investors’ capital. In contrast, the Nifty Index has only managed a gain of around 28 percent in the same period. This remarkable performance underscores the strong demand and investor confidence in Reliance Power’s strategic direction and operational achievements.
