Reliance Infrastructure Shares Hit Upper Circuit Again: What’s Driving the Rally

Mumbai: Shares of Reliance Infrastructure, a company led by Anil Ambani, surged sharply on Thursday, hitting the upper circuit limit of 5% at ₹165.85 on the BSE. This marks the second consecutive day the stock has been capped at the upper circuit after a prolonged six-day decline.

Stock Performance Overview

Despite the recent rebound, Reliance Infrastructure’s one-month performance remains weak, with the share price down by approximately 27% over the period. The company’s market capitalization stands at around ₹6,454 crore, with a 52-week high of ₹423.40 and a low of ₹149.16, indicating that the stock is still roughly 60% below its yearly peak.

Valuation and Technical Outlook

• P/E Ratio: 2.11
• P/B Ratio: 0.26

These low multiples suggest the stock may be undervalued but could also reflect internal challenges within the company.

Technical indicators highlight a potential short-term recovery:

• RSI (14-day): 28.8 — signaling the stock is oversold
• Moving Averages: The stock is trading below 7 of 8 key SMAs, showing a long-term bearish trend despite the short-term rally

Shareholding Pattern

• Promoters: Held steady at 19.05% as of September 2025
• Mutual Funds: Increased stake slightly from 0.29% to 0.35%, indicating marginal domestic institutional confidence
• Foreign Institutional Investors (FII/FPI): Reduced stake from 10.26% to 7.07%, reflecting foreign investor caution

Conclusion

Reliance Infrastructure’s stock is attracting attention due to its sharp short-term recovery, hitting the upper circuit amid low valuations and oversold technical indicators. While domestic investors are showing cautious optimism, the decline in foreign holdings signals underlying market caution. Analysts advise monitoring the stock for further technical signals and potential volatility.