Reliance Infrastructure Ltd Plunges to Lower Circuit Amid Heavy Selling Pressure

Intraday Price Action and Market Context

Reliance Infrastructure Ltd, a key player in the power sector, witnessed a sharp decline today as it opened with a gap down of 4.67%, signalling immediate bearish sentiment. The stock touched an intraday low of ₹114.11, which also marked the lower circuit price band of 5%, effectively halting further declines for the day. The high for the session was ₹119.80, indicating a wide intraday range of nearly ₹5.7, but the weighted average price skewed heavily towards the lower end, underscoring the dominance of sellers throughout the trading session.

The total traded volume stood at 13.23 lakh shares, generating a turnover of ₹15.22 crore. Despite this volume, delivery volumes have been falling, with only 1.61 lakh shares delivered on 06 Feb 2026, down by 40.38% compared to the five-day average. This decline in delivery volume suggests that investors are increasingly reluctant to hold the stock, preferring to exit positions amid the ongoing downtrend.

Technical Weakness and Moving Averages

Technically, Reliance Infrastructure is under significant pressure, trading below all major moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad-based weakness across timeframes signals a sustained bearish trend, discouraging fresh buying interest. The stock has also been on a consecutive losing streak for three days, shedding nearly 14% in that period, which is a stark underperformance compared to the power sector’s modest gain of 0.22% and the Sensex’s rise of 0.59% on the same day.

Market Capitalisation and Mojo Score

Reliance Infrastructure’s market capitalisation currently stands at ₹4,748 crore, categorising it as a small-cap stock within the power industry. The company’s Mojo Score has deteriorated to 26.0, with a Mojo Grade of Strong Sell as of 05 Feb 2026, an upgrade in the negative direction from the previous Sell rating. This downgrade reflects worsening fundamentals and technical outlook, signalling caution for investors considering exposure to this stock.

Investor Sentiment and Panic Selling

The sharp fall and lower circuit hit are indicative of panic selling, with investors rushing to exit positions amid fears of further downside. The unfilled supply of shares at lower price levels has exacerbated the decline, as sellers overwhelmed buyers, pushing the stock to its daily permissible limit down. This scenario often reflects a lack of confidence in near-term recovery prospects, especially when accompanied by weak delivery volumes and poor technical positioning.

Such intense selling pressure can also be attributed to broader sectoral challenges and company-specific concerns, which have not been fully disclosed but are reflected in the deteriorating Mojo Grade and the stock’s underperformance relative to its peers. The power sector, while generally stable, has seen pockets of volatility, and Reliance Infrastructure’s current trajectory places it among the weaker performers.

Comparative Performance and Outlook

Over the past three trading sessions, Reliance Infrastructure has lost 13.98% in value, a stark contrast to the sector’s positive returns. This divergence highlights the stock’s vulnerability and the market’s selective preference for other power stocks with stronger fundamentals or technical setups. The stock’s liquidity remains adequate for moderate trade sizes, with a 2% threshold of the five-day average traded value supporting transactions up to ₹0.8 crore, but this has not prevented the steep decline.

Implications for Investors

For investors, the current scenario presents a cautionary tale. The strong sell rating and the stock’s technical weakness suggest that Reliance Infrastructure Ltd may continue to face downward pressure in the near term. The new 52-week low and the lower circuit hit are red flags signalling that the stock is under significant stress. Investors should carefully assess their risk tolerance and consider whether to hold, exit, or explore alternative investments within the power sector or other industries.

Given the stock’s small-cap status and the recent deterioration in its Mojo Grade, it may be prudent to monitor upcoming corporate announcements, sector developments, and broader market trends before committing fresh capital. The falling delivery volumes also imply that long-term conviction among shareholders is waning, which could prolong the recovery timeline.

Conclusion

Reliance Infrastructure Ltd’s plunge to the lower circuit limit on 09 Feb 2026 underscores the intense selling pressure and negative sentiment surrounding the stock. With a maximum daily loss of 5.0%, a new 52-week low of ₹114.11, and a Strong Sell Mojo Grade, the stock is facing significant headwinds. Investors should exercise caution and consider portfolio diversification or alternative opportunities until clearer signs of recovery emerge.

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