Shares of Reliance Power Ltd surged as much as 9% in intraday trade on Tuesday, outperforming the broader power sector index and drawing renewed investor interest. The rally came amid increased volumes and speculation over potential restructuring efforts and operational turnaround plans by the company.
At around 12:30 PM IST, Reliance Power stock was trading at ₹27.85, up 8.9% on the BSE, marking its highest single-day gain in recent weeks. The stock has been on a recovery path in recent sessions and is now up over 18% in the past five trading days.
Meanwhile, the BSE Power Index registered a modest gain of 0.2%, supported by other key players such as NTPC, Tata Power, and JSW Energy, although Reliance Power was the standout performer.
What’s Fueling Reliance Power’s Rally?
Analysts point to a mix of value buying, technical breakout, and ongoing buzz about a potential revival strategy being implemented by the company. Investors are also hopeful about debt restructuring initiatives, especially as the company focuses on monetizing non-core assets and reducing liabilities.
There is also optimism surrounding a broader renewable energy push across the sector, with Reliance Power expected to realign itself with the group’s clean energy ambitions, which could bring long-term benefits.
Market Experts Weigh In
“Reliance Power has seen a clear breakout above its resistance level of ₹25 with strong volume support. If the momentum continues, the stock could test ₹30 levels in the near term,” said Anand Rathi, a senior analyst at a Mumbai-based brokerage.
The stock remains popular among retail investors due to its low price point and the anticipation that parent company Reliance ADAG may back further strategic moves.
Stock Performance Snapshot
- Day’s High: ₹27.90
- 52-week High: ₹32.45
- 52-week Low: ₹9.80
- Market Cap: Approx. ₹10,200 crore
- 1-Month Gain: +27%
- YTD Gain: +45%
Outlook
While Reliance Power remains a speculative play for many investors, its recent performance and positive technical indicators suggest short-term momentum. However, market experts advise caution due to its highly leveraged balance sheet and the need for a more stable long-term strategy.
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