Why is Reliance Power falling/rising?

As of 02-Jul, Reliance Power Ltd's stock price is currently at Rs 68.00, reflecting a decrease of Rs 1.64 or 2.35%. The stock has been underperforming recently, having fallen for the last two consecutive days, resulting in a total decline of 3.13% during this period. Despite this short-term drop, the stock has shown strong performance over longer periods, with a year-to-date increase of 59.77% and a remarkable 136.69% rise over the past year. However, the stock's recent performance is tempered by a significant drop in investor participation, with delivery volume decreasing by 39.06% against the five-day average. Additionally, while the company has reported positive results, including a high return on capital employed and cash reserves, it faces challenges such as weak long-term fundamental strength and a high debt-to-EBITDA ratio, which may be contributing to the current price decline.
In the broader market context, Reliance Power's recent performance contrasts with the Sensex, which has gained 0.79% over the past week. Although the stock has outperformed the benchmark over longer periods, its recent underperformance, coupled with a decline in investor interest, suggests a cautious sentiment among investors. The stock's liquidity remains adequate for trading, but the falling delivery volume indicates a potential lack of confidence in the stock's immediate prospects. Overall, while Reliance Power has demonstrated strong historical returns, the current price movement reflects concerns about its long-term profitability and ability to manage debt effectively.