Why is Reliance Power falling/rising?

As of 06-Aug, Reliance Power Ltd's stock price is rising, currently at Rs 47.58, reflecting an increase of Rs 2.26 or 4.99%. Today's price summary indicates that the stock has gained after five consecutive days of decline, despite opening down by 4.9%. It reached an intraday high of Rs 47.58, showcasing a significant recovery. Over the past week, the stock has underperformed with a decline of 10.93%, but it has shown strong performance over the longer term, with a 52.45% return over the past year. Positive factors contributing to the recent movement include a notable growth in profit after tax and cash reserves, alongside a fair valuation compared to peers. However, concerns about long-term fundamental strength, such as a high debt-to-EBITDA ratio and low return on equity, may temper investor enthusiasm.
In the broader market context, while Reliance Power's short-term performance has been weak compared to the benchmark Sensex, which fell by only 1.15% over the same week, the stock has outperformed the benchmark significantly over the past year and three years. This suggests that while the stock is experiencing volatility and short-term challenges, its long-term trajectory remains positive. The stock's liquidity is adequate for trading, but declining investor participation may indicate caution among investors, particularly domestic mutual funds, which hold a minimal stake in the company.