Why is Reliance Infra. falling/rising?

Aug 22 2025 09:34 PM IST
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As of 22-Aug, Reliance Infrastructure Ltd's stock price is Rs 289.50, down 4.44%, reversing a five-day gain streak. Despite a strong annual return, high debt levels and weak fundamentals may be driving the recent decline, with a significant 1-month drop of -23.11%.
As of 22-Aug, Reliance Infrastructure Ltd is experiencing a decline in its stock price, currently at Rs 289.50, which reflects a decrease of Rs 13.45 or 4.44%. Today's performance indicates that the stock has underperformed its sector by 3.85% and has reversed a trend after five consecutive days of gains, touching an intraday low of Rs 288. The stock's recent performance shows a 1-week return of +11.35%, but a significant 1-month decline of -23.11%. Despite a strong annual return of +22.98% and a notable increase in profits, the stock's high Debt to EBITDA ratio and weak long-term fundamental strength may be contributing to its current downward movement. Additionally, while promoter confidence has increased with a 2.55% rise in stake, the overall valuation remains a concern.

Broader Market Context: In comparison to the benchmark, the stock's short-term performance has been significantly better, with a 1-week return of +11.35% against the Sensex's +0.88%. However, the stock's 1-month performance is notably worse than the benchmark, which has only declined by -1.07%. This suggests that while the stock has shown some resilience in the short term, the recent drop indicates underlying issues that may be affecting investor sentiment. The liquidity of the stock remains adequate, but the overall market context, including the broader economic conditions and sector performance, may also be influencing the stock's current trajectory.
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