Reliance Infrastructure Ltd Plunges to Lower Circuit Amid Heavy Selling Pressure

Intraday Price Action and Market Context

Reliance Infrastructure Ltd (stock code 400868), a key player in the power industry, witnessed a sharp decline today as it hit the lower circuit price band of 5%, closing at ₹92.81. The stock opened with a gap down of 3.72%, reflecting immediate bearish sentiment. During the session, it touched an intraday low of ₹92.75, marking a fresh 52-week low and signalling sustained downward momentum.

The total traded volume stood at 7.60 lakh shares, with a turnover of ₹7.09 crore, indicating moderate liquidity but heavy selling pressure. Despite this, the delivery volume on 25 Feb was only 99,190 shares, down by 50.01% compared to the five-day average, suggesting falling investor participation and a possible shift towards short-term speculative trading rather than long-term holding.

Comparative Performance and Technical Weakness

Reliance Infrastructure’s 1-day return of -4.96% starkly contrasts with the Power sector’s marginal decline of -0.05% and the Sensex’s positive gain of 0.24%. This divergence highlights the stock’s underperformance relative to its peers and the broader market. The stock is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – underscoring a bearish technical setup and lack of near-term support.

Market cap-wise, Reliance Infrastructure is classified as a small-cap with a valuation of approximately ₹3,996 crore. Its Mojo Score has deteriorated to 26.0, with a Strong Sell grade assigned on 5 Feb 2026, an upgrade in negativity from the previous Sell rating. This downgrade reflects worsening fundamentals and market sentiment, reinforcing the cautionary stance among investors and analysts alike.

Investor Sentiment and Supply-Demand Dynamics

The stock’s plunge to the lower circuit was driven by heavy selling pressure, with panic selling dominating the session. The unfilled supply at lower price levels indicates that sellers outnumbered buyers significantly, preventing any meaningful recovery attempts. This imbalance often reflects negative news flow, deteriorating fundamentals, or broader sectoral weakness, all of which appear to be weighing on Reliance Infrastructure currently.

Investor confidence has been further eroded by the stock’s inability to hold above critical support levels, as evidenced by its consistent trading below all major moving averages. The falling delivery volumes suggest that long-term holders are either exiting or sidelining their positions, while short-term traders may be exacerbating volatility through rapid selling.

Fundamental and Sectoral Considerations

Reliance Infrastructure operates in the power sector, which has faced multiple headwinds including regulatory challenges, fluctuating demand, and rising input costs. The company’s small-cap status and market cap grade of 3 indicate limited scale and moderate liquidity, factors that can amplify price swings in volatile market conditions.

Given the current Mojo Grade of Strong Sell, investors are advised to exercise caution. The downgrade from Sell to Strong Sell on 5 Feb 2026 reflects a reassessment of the company’s financial health, operational outlook, and market positioning. Such a rating typically signals expectations of further downside risk and advises against accumulation at prevailing levels.

Outlook and Investor Takeaways

Reliance Infrastructure’s sharp decline and lower circuit hit mark a critical juncture for investors. The combination of technical weakness, deteriorating Mojo scores, and sectoral challenges suggests that the stock may remain under pressure in the near term. The lack of buyer interest at lower levels and falling delivery volumes further complicate any potential recovery.

Investors should closely monitor upcoming corporate announcements, sectoral developments, and broader market trends before considering fresh exposure. For those currently holding the stock, risk management strategies such as stop-loss orders or partial profit booking may be prudent to mitigate further downside.

Meanwhile, market participants seeking alternative opportunities within the power sector or other small-cap segments may benefit from comparative analysis tools and thematic lists that highlight stocks with stronger fundamentals and momentum.

Summary of Key Metrics:

• Closing Price: ₹92.81 (Lower circuit hit)
• Intraday Low: ₹92.75 (New 52-week low)
• Day Change: -4.94%
• Volume Traded: 7.60 lakh shares
• Turnover: ₹7.09 crore
• Mojo Score: 26.0 (Strong Sell)
• Market Cap: ₹3,996 crore (Small Cap)
• Trading below all major moving averages

In conclusion, Reliance Infrastructure Ltd’s performance on 26 Feb 2026 underscores the challenges facing small-cap power stocks amid volatile market conditions. The stock’s lower circuit hit and strong selling pressure reflect investor apprehension and a cautious outlook. Comprehensive evaluation and strategic switching may offer better risk-adjusted returns in this environment.

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