Reliance Infrastructure Ltd Plunges to Lower Circuit Amid Heavy Selling Pressure

Sharp Decline and Lower Circuit Trigger

Reliance Infrastructure Ltd, a key player in the power sector, witnessed a dramatic fall in its share price on Monday, 2 Feb 2026. The stock opened sharply lower by 4.99% and remained locked at ₹120.98 throughout the trading session, hitting the lower circuit price band of 5%. This marked the seventh consecutive day of decline, cumulatively erasing 30.15% of its market value over this period. The stock’s inability to trade above this price level indicates a complete absorption of sell orders at the lower circuit, signalling a strong bearish sentiment.

The day’s trading volume was recorded at 48,811 shares, translating to a turnover of ₹0.59 crore. While the volume appears modest, it is significant given the stock’s liquidity profile and the fact that it did not trade on three days in the last 20 sessions, highlighting erratic trading patterns. The stock’s price action today underperformed its sector by 5.35% and lagged behind the broader Sensex, which gained 0.22% on the same day.

Technical Weakness and Moving Averages

From a technical standpoint, Reliance Infrastructure is trading below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring the prevailing downtrend. The persistent weakness across these key technical indicators suggests that the stock is struggling to find support and may continue to face selling pressure in the near term.

Investor participation has notably increased, with delivery volumes on 27 Jan rising by 112.81% compared to the 5-day average, indicating that more shareholders are offloading their holdings. This surge in delivery volume amid falling prices is a classic sign of panic selling, as investors rush to exit positions to limit losses.

Market Capitalisation and Sector Context

Reliance Infrastructure Ltd is classified as a small-cap company with a market capitalisation of approximately ₹5,216 crore. The power sector, in which it operates, has shown mixed performance recently, with the sector index gaining 0.74% on the day. Despite this sectoral resilience, Reliance Infrastructure’s shares have underperformed significantly, reflecting company-specific challenges or investor concerns.

The stock’s Mojo Score currently stands at 31.0, with a Mojo Grade of ‘Sell’, downgraded from a previous ‘Strong Sell’ rating on 31 Jan 2026. This downgrade reflects a slight improvement in outlook but still signals a negative sentiment among analysts and market participants. The company’s Market Cap Grade is rated 3, indicating moderate size but limited market influence compared to larger peers.

Investor Sentiment and Trading Behaviour

The persistent decline and the lower circuit lock suggest a high degree of panic selling, where investors rush to liquidate holdings amid fears of further losses. The stock’s opening gap down of nearly 5% today set the tone for a subdued session, with no upward price movement recorded. This lack of price range throughout the day is indicative of unfilled supply and a lack of buying interest at higher levels.

Such erratic trading behaviour, including the absence of trades on multiple days recently, points to uncertainty and low confidence in the stock’s near-term prospects. The combination of technical weakness, negative analyst ratings, and poor price performance has created a challenging environment for Reliance Infrastructure’s shares.

Outlook and Investor Considerations

Given the current technical and fundamental backdrop, Reliance Infrastructure Ltd faces significant headwinds. The sustained downtrend, combined with the recent downgrade in analyst ratings and the stock’s failure to attract buying interest, suggests that the risk of further declines remains elevated. Investors should exercise caution and closely monitor developments related to the company’s operational performance and sector dynamics.

For those holding positions, it may be prudent to reassess risk tolerance and consider stop-loss strategies to mitigate potential losses. Prospective investors should weigh the stock’s small-cap status and liquidity constraints against the broader market environment and alternative investment opportunities.

In summary, Reliance Infrastructure’s plunge to the lower circuit limit on 2 Feb 2026 highlights the intense selling pressure and negative sentiment surrounding the stock. While the power sector shows some resilience, company-specific challenges continue to weigh heavily on its share price, making it a stock to watch with caution in the coming weeks.

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