Why Anil Ambani-backed Reliance Power share price is skyrocketing — explained

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Stock market today: Anil Ambani-backed Reliance Power shares have been in uptrend after ushering in current financial year 2023-24. Reliance Power shares bottomed out at ₹9.15 apiece levels at the end of March 2023. Since then it has been moving upside continuously.

Reliance Power share price today opened upside and went on to touch intraday high of ₹24.25 per share levels, logging intraday rise of around 4 per cent during morning deals on first trade session of New Year 2024. According to stock market experts, market is bullishn on power stocks on tarrif hike. It is not just Reliance Power shares, in fact most of the power stocks backed by strong brand like Tata or Adani, they have witnessed strong buying interest in recent months.

Also Read: Yes Bank shares cheer New Year after receipt of ₹150 crore from NPA portfolio sale. Experts see more upside Reliance Power being backed by Anil Ambani and available at such a lower price are some of the major reasons for value buying in the scrip. However, they warned investors to maintain strict stop loss while keeping position in Reliance Power shraes as it may move either ways on single trigger.

Speaking on the reasons that are fueling Reliance Power shares, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Its not just Reliance Power shares, most of the power stocks backed by big names like Tata and Adani have also ascended in recent months. Major reason for upside in these power shares are tarrif hike in power sector. This is expected to improve margins of the power companies and Dalal Street bulls are betting high on power stocks these days.