Reliance Infrastructure Ltd Hits Lower Circuit Amid Heavy Selling Pressure

Intraday Price Action and Circuit Breaker Trigger

Reliance Infrastructure Ltd (stock code 400868) opened sharply lower by 2.51% at the start of trading on 16 Feb 2026, signalling immediate bearish sentiment. The stock’s price steadily declined throughout the session, hitting an intraday low of ₹98.91, which also marked its new 52-week low. The share price ultimately settled at ₹98.99, down 4.70% on the day, triggering the maximum permissible daily price band of 5% and hitting the lower circuit limit.

This downward price band restriction prevented further decline, reflecting the severity of selling pressure and the market’s attempt to stabilise the stock price. The weighted average price for the day was closer to the low price, indicating that the bulk of trading volume occurred near the bottom end of the price range.

Volume and Liquidity Analysis

Trading volumes were substantial, with total traded volume reaching 8.33 lakh shares and turnover amounting to ₹8.28 crore. Despite this, delivery volumes have shown a marked decline, with only 96,190 shares delivered on 13 Feb 2026, down 32.04% compared to the five-day average delivery volume. This suggests that while active trading and short-term speculative selling remain high, genuine investor participation and long-term holding interest are waning.

Liquidity remains adequate for moderate trade sizes, with the stock’s liquidity supporting transactions up to approximately ₹0.45 crore based on 2% of the five-day average traded value. However, the persistent fall in delivery volumes signals a deteriorating investor confidence in the stock’s near-term prospects.

Technical and Trend Indicators

Reliance Infrastructure is currently trading below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a strong bearish trend. The stock has been on a consecutive four-day losing streak, cumulatively shedding 17.22% in value during this period. This sustained downtrend highlights the absence of any immediate technical support and the dominance of sellers in the market.

Compared to its sector, which gained 0.65% on the same day, and the Sensex, which was nearly flat with a 0.06% rise, Reliance Infrastructure’s underperformance is stark. The stock lagged its power sector peers by 5.42% on 16 Feb 2026, reflecting company-specific concerns rather than broader sector weakness.

Fundamental and Market Capitalisation Context

Reliance Infrastructure Ltd operates within the power industry and is classified as a small-cap stock with a market capitalisation of approximately ₹4,262 crore. Despite its established presence in the power sector, the company’s current Mojo Score stands at a low 26.0, with a Mojo Grade of Strong Sell as of 5 Feb 2026. This represents a downgrade from its previous Sell rating, signalling deteriorating fundamentals and heightened risk for investors.

The company’s market cap grade is rated 3, indicating limited size and liquidity relative to larger peers. This small-cap status often results in higher volatility and susceptibility to sharp price movements, as evidenced by the recent circuit hit and volume spikes.

Investor Sentiment and Panic Selling Dynamics

The sharp decline and lower circuit hit reflect a wave of panic selling among investors, likely triggered by a combination of disappointing operational updates, sector headwinds, or broader market concerns. The unfilled supply of shares at lower price levels suggests that sellers are aggressively offloading positions, while buyers remain hesitant to step in, exacerbating downward momentum.

Such market behaviour often leads to a self-reinforcing cycle of price declines, as stop-loss orders are triggered and sentiment worsens. The lack of significant buying interest at the lower circuit price indicates that investors are either awaiting clearer signs of recovery or reallocating capital to more promising opportunities.

Outlook and Strategic Considerations for Investors

Given the current technical weakness, negative rating outlook, and persistent selling pressure, investors should exercise caution with Reliance Infrastructure Ltd. The stock’s underperformance relative to its sector and the broader market suggests company-specific challenges that may take time to resolve.

Investors seeking exposure to the power sector may consider evaluating alternative small-cap stocks with stronger fundamentals and more favourable technical setups. Reliance Infrastructure’s deteriorated Mojo Grade and falling delivery volumes highlight the risks of holding the stock in the near term.

Historical Performance and Risk Assessment

Over the past four trading sessions, Reliance Infrastructure has experienced a cumulative decline of 17.22%, underscoring a pronounced negative trend. This sustained fall has eroded investor confidence and increased downside risk. The stock’s inability to hold above key moving averages further confirms the bearish momentum.

Investors should closely monitor upcoming corporate announcements, sector developments, and broader market conditions that could influence the stock’s trajectory. Until there is a clear reversal in trend or improvement in fundamental metrics, the risk of further downside remains elevated.

Conclusion

Reliance Infrastructure Ltd’s plunge to the lower circuit limit on 16 Feb 2026 highlights significant selling pressure and deteriorating investor sentiment. The stock’s new 52-week low, coupled with a Strong Sell Mojo Grade and declining delivery volumes, signals caution for current and prospective shareholders. While the power sector remains an important segment of the economy, Reliance Infrastructure’s recent performance suggests that investors may be better served exploring alternative opportunities with stronger fundamentals and technical resilience.

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