The shares of Anil Ambani-led Reliance Power shares is still on the continuous mode of their downward trend on the Indian stock market, hitting the 5 percent lower circuit for the third consecutive session.
At 1:22 PM IST, the company's stock traded at Rs 48.40 on the National Stock Exchange (NSE), which is now 11 percent lower than its recent 52-week high of Rs 53.64 reached just last week.
Share performance |
Despite the current slump, the company stock on the year-to-date basis surged approximately 102 per cent.
Profit Booking Post Surge
The recent drop in Reliance Power's stock price comes after a month where shares skyrocketed over 60 percent.
This surge was mainly driven by the announcement that the Anil Ambani-led company had become debt-free. However, as is common in the stock market, a wave of profit-booking has followed the rally, coinciding with a broader market sell-off.
In addition to the debt announcement, the company also secured a contract for a 500 MW/1000 MWh battery storage project from the Solar Energy Corporation of India (SECI).
Anil Ambani | File Photo
Further factors leading to it is that on September 10 the company also announced that it had been released from all obligations related to the outstanding debt of its subsidiary, Vidarbha Industries Power Limited (VIPL), which amounted to Rs 3,872.04 crore.
From a technical perspective, Reliance Power shares are trading above their 5-day, 50-day, 100-day, and 200-day moving averages. However, with a relative strength index (RSI) of 79, the stock is currently pointing out as a overbought conditions.
Over the past year, the company shares rallied a 172 percent. In comparison, the Nifty index has gained around 28 percent in the same period.
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