Produced by: Prashun Talukdar
Reliance Infra shares fell sharply on Wednesday, taking their downward run to the third straight session. The stock dived 20% to hit its lower price band of Rs 227.40. Despite the said fall, the scrip has climbed 7.95% on a year-to-date (YTD) basis. The company is a part of the Reliance Anil Dhirubhai Ambani Group.
Today's plunge in the share price came after it was reported that the Supreme Court of India has overturned its prior ruling that compelled the Delhi Metro Rail Corporation (DMRC) to pay an arbitration award of around Rs 8,000 crore to Reliance Infra's subsidiary, Delhi Airport Metro Express Pvt Ltd (DAMEPL).
"We inform you that the Hon'ble Supreme Court today has allowed the curative petition filed by DMRC against DAMEPL. The company wishes to clarify that the order does not impose any liability and the company has not received any money from DMRC or DAMEPL under the arbitral award," Reliance Infra stated.
On BSE, around 8.74 lakh shares changed hands today. The figure was higher than the two-week average volume of 3.54 lakh shares. Turnover on the counter came at Rs 21.25 crore, commanding a market capitalisation (m-cap) of Rs 9,008.02 crore.
Technical analysts were largely 'bearish' on the counter. Osho Krishan, Senior Research Analyst (Technical & Derivatives) at Angel One, said, "For now, Rs 210-200 is likely to cushion the blip, while a further correction might disrupt the intermediate trend. On the higher end, until it reclaims Rs 260 sub-zone, cautious stance is warranted." AR Ramachandran from Tips2trades said, "Rel Infra has strong resistance at Rs 280. A daily close below support of Rs 225 could lead to a downward target of Rs 193 in the near term."
Bourses BSE and NSE have put the securities of Reliance Infra under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
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