Why is Reliance Infra. falling/rising?
As of 13-Aug, Reliance Infrastructure Ltd's stock price is Rs 257.55, down 5.0% and underperforming its sector. The stock has shown a bearish trend with significant declines in both short-term and long-term performance, facing challenges such as high volatility and weak fundamentals.
As of 13-Aug, Reliance Infrastructure Ltd's stock price is currently at Rs 257.55, reflecting a decrease of Rs 13.55, or 5.0%. The stock has underperformed its sector by 5.05% today and has experienced a consecutive decline over the last two days, totaling a drop of 6.43%. It has also been trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. Despite a strong performance over the past year with a return of 15.78% and significant profit growth, the stock is facing challenges such as high volatility and a notable decline in investor participation, with delivery volume falling by 73.92% against the 5-day average. While there are positive indicators like increased promoter confidence and attractive valuation metrics, the stock's recent performance is overshadowed by its weak long-term fundamentals, including a high Debt to EBITDA ratio.In the broader market context, the stock's short-term performance has been significantly worse than the benchmark, with a 1-week return of -12.77% compared to a negligible change of -0.01% for the Sensex. Over the past month, Reliance Infrastructure has declined by 31.77%, while the benchmark has only fallen by 2.38%. This stark contrast highlights the stock's struggles relative to the overall market, which has been more stable. The combination of high volatility, declining investor interest, and weak long-term fundamentals suggests that the stock is currently facing considerable headwinds, contributing to its recent price decline.
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