The Anil Ambani-backed Reliance Power has been making headlines in the stock market due to its recent surge in share price. After hitting lows of nearly INR 10 per share, the company’s stock has been on an upward trajectory with frequent upper circuits.
Also Read | Inflation Rate Stands at 5.09%, Remains within RBI Tolerance Range for the sixth consecutive month
The Rally
The share price of the company is constantly hitting upper circuit, except for a minor deviation on Tuesday last week. As of March 13, 2024, the shares closed at INR 20.40. However, strong buying interest witnessed on March 14 has continued to propel the stock upwards. In just eight straight sessions, the share price has soared to INR 27.60 apiece on the NSE, marking a remarkable 35% appreciation.
Reasons Behind the Surge
Stock market experts attribute this surge to multiple factors. Firstly, reports are suggesting that Reliance Power has settled its dues with prominent banks such as ICICI Bank, Axis Bank, and DBS Bank. This debt reduction news has instilled confidence among investors, leading to increased buying interest. Additionally, rumours of fresh capital infusion into the company have further fueled the optimism surrounding Reliance Power shares.
Expert Analysis
According to a Research Analyst at StoxBox, the recent gains in Reliance Power shares can be largely attributed to the debt reduction buzz. Significance of Capital Infusion news was also highlighted in supporting the stock’s appreciation. He mentions that Reliance Power’s ties with Reliance Commercial Finance have contributed to the recent surge.
Also Read | Paras Healthcare Eyes IPO Worth INR 1,000 Cr for Expansion and Shareholder Exit
Sumeet Bagadia, Executive Director at Choice Broking, anticipates further upside potential for Reliance Power shares. He suggests that if the stock manages to breach the INR 30 mark on a closing basis, it could potentially reach INR 34 per share. Bagadia advises shareholders to hold onto their positions, maintaining a strict stop loss at INR 22.
Disclaimer
The content of this article is only for informational purposes and we do not offer any investment advice from our end. Please consult a SEBI-registered investment advisor before making any investment decision. The information does not necessarily reflect the views/opinions of the publisher.
