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Reliance Infrastructure shares rally 5%, hit upper circuit for second day after recent sell-off

by FeeOnlyNews.com
5 months ago
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Reliance Infrastructure shares rally 5%, hit upper circuit for second day after recent sell-off
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Shares of Reliance Infrastructure rose sharply on Thursday, hitting a 5% upper circuit at Rs 165.85 apiece on the BSE. This marks the second straight day of gains after the stock had previously declined for six consecutive sessions.

Although the stock has shown a two-day recovery, its performance over the past month remains weak, with the share price down by about 27%.

The company currently has a market capitalisation of around Rs 6,454 crore. Its 52-week range spans from a high of Rs 423.40 to a low of Rs 149.16, meaning the stock is still down about 60% from its yearly peak.

Reliance Infrastructure appears to be trading at very low valuations, with a P/E ratio of 2.11 and a P/B ratio of 0.26. Such low multiples often indicate that the stock may be undervalued, but they can also reflect underlying business concerns.

Reliance Infra Technical Outlook:

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RSI (14-day): 28.8 — Since an RSI below 30 suggests the stock is oversold, this could signal the potential for a short-term rebound.Moving Averages: The stock is below 7 out of 8 simple moving averages (SMAs). Except for the short-term 5-day SMA, it is trading under all major SMAs, indicating a bearish trend in the broader timeframe despite the recent bounce.

Reliance Infrastructure Shareholding

The promoters maintained their stake at 19.05% in the September 2025 quarter, indicating no change in their ownership position.

Mutual fund holdings increased from 0.29% to 0.35% during the same quarter. This slight rise suggests that domestic institutional investors have shown a bit more confidence in the stock.

Also read: ICICI, Canara likely to raise Rs 7,500 croreForeign Institutional Investors (FII/FPI) reduced their stake significantly, dropping from 10.26% to 7.07%. This indicates a notable pullback from foreign investors, which can sometimes reflect broader concerns about the company or market sentiment.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)



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