Reliance Power Skyrockets 18.5%: Record Volumes Surge!
Reliance Power shares witness their most substantial intraday rally since January 2024, driven by surging volumes, renewed investor interest, and positive sentiment around debt restructuring efforts.
summary
On May 23, 2025, Reliance Power’s stock surged by 18.5%, hitting a six-month peak of ₹52.82. The sudden spike was attributed to bullish investor sentiment and a significant increase in trading volumes, making it the stock’s most substantial intraday gain since January 2024. Analysts are monitoring the stock for potential gains as corporate debt restructuring progresses and sector-wide optimism strengthens.
Reliance Power Stocks Surge as Investor Confidence Recovers
Mumbai, May 24, 2025 – Reliance Power Ltd., a key player in the Indian power sector and a member of the Reliance Anil Dhirubhai Ambani Group (ADAG), stunned the markets on Friday as its stock rallied a staggering 18.5% intraday, peaking at ₹52.82 per share. This marks the highest level since November 2024 and the sharpest intraday jump since January 2024, rejuvenating investor enthusiasm for the stock.
The surge was underpinned by robust trading volumes, suggesting renewed interest from institutional investors and retail traders alike. Over 28.4 million shares exchanged hands on the NSE—more than 3.5x the stock’s 30-day average volume—making it one of the top-traded stocks by volume for the day.
Key Numbers at a Glance
Metric Value (May 23, 2025)
Opening Price ₹45.60
Day’s High ₹52.82
Closing Price ₹51.80
Intraday Gain 18.5%
Volume Traded (NSE) 28.4 million shares
52-Week High/Low ₹55.20 / ₹17.30
Market Capitalization ~₹19,000 crore (approx.)
Why the Rally? A Confluence of Factors
1. Heavy Trading Volumes Drive Momentum
The unusual volume spike was one of the most evident catalysts for the price surge. Market participants suggest this was likely driven by institutional bulk buying, short covering, and algorithmic trades triggered as the stock breached key resistance levels at ₹47 and ₹50.
2. Positive Sentiment Around Debt Resolution
Reliance Power has been in the process of strategic debt restructuring, working closely with lenders and group companies. Recent reports indicate the company may soon announce a resolution plan to clear legacy debt and improve cash flows. The market is pricing in a favorable outcome, potentially restoring financial discipline and long-term viability.
3. Sectoral Tailwinds and Infrastructure Focus
India’s energy and infrastructure sectors are in sharp focus as the government pushes for more private participation in power generation and transmission. This macro theme has boosted several power stocks over the past few weeks. With Reliance Power’s assets in coal, hydro, and gas-based projects across states, investors are betting on a re-rating.
4. Technical Breakout
Reliance Power’s stock has been confined to a tight trading range of ₹39 to ₹45 in recent weeks. Friday’s breakout above ₹50 was seen as a bullish signal, confirming an uptrend. According to chartists, the next resistance zone lies around ₹55–₹57, while support is expected at ₹46.
A Quick Flashback: From Turmoil to Turnaround?
Reliance Power, once a market darling during the infrastructure boom in the late 2000s, lost investor confidence in the past decade due to project delays, high leverage, and sectoral disruptions. The stock had fallen over 90% from its peak post-IPO, disappointing long-term shareholders.
However, the recent months have seen gradual improvements. In its Q4 FY25 earnings call, the company highlighted progress in asset monetization and hinted at streamlining operations for profitability. Additionally, stake reductions in some subsidiaries and a focus on debt-light operations have sparked a glimmer of hope.
What Analysts Are Saying
Motilal Oswal Securities:
“Reliance Power’s stock surge is driven by fundamental factors, extending beyond mere market speculation.
There’s increasing clarity on the management’s efforts to reduce debt and unlock value. However, valuations remain aggressive at current levels, and investors should await sustained financial performance.”
Kotak Institutional Equities:
“Volumes suggest accumulation is taking place, potentially hinting at strategic interest. We await concrete developments on the debt restructuring before revising our neutral stance.”
ICICI Direct:
“Technical patterns suggest that the upcoming target for an upward move is around ₹57. Long-term investors should look for a close above ₹55 on weekly charts to confirm a broader uptrend.”
Risks to Watch
Investors should remain vigilant about several inherent risks despite the recent optimism:
1. High Debt Levels: As of FY24, Reliance Power’s total consolidated debt is projected to surpass ₹25,000 crore, making timely debt servicing and restructuring a significant challenge.
2. Weak Cash Flows: The company’s operating cash flows have been under pressure, primarily due to underutilization of capacity and delays in project implementation.
3. Regulatory Challenges: Environmental clearance processes, fuel supply agreements, and tariff regulations continue to create hurdles within the Indian power sector.
What Lies Ahead?
The coming weeks could be crucial for Reliance Power’s trajectory. Investors and analysts await updates on debt recast plans, potential strategic investments, or merger activity within the ADAG ecosystem. With bulls firmly in control of short-term sentiment, the stock could see continued interest—provided the company backs optimism with financial results.
For long-term credibility, the market will look for consistent earnings visibility, improved asset utilization, andz clarity in corporate governance.
Conclusion
Reliance Power’s remarkable 18.5% intraday rally on May 23, 2025, underscores the market’s sensitivity to investor sentiment, technical milestones, and liquidity dynamics. While the rally marks a notable milestone, its sustainability will depend on how quickly and effectively the company can translate restructuring plans into real profitability. With India’s energy demand only expected to rise, the opportunity is immense—now it’s on Reliance Power to deliver.
The image added is for representation purposes only
