In a surprise development, Reliance Power shares increased by 36% in the stock market, attracting fresh interest from both institutional and retail investors. Reliance Power, also referred to as RPOWER, has been out of the news for a number of years, but its outstanding performance has brought it back into the public’s attention. What exactly is driving this event, however, and is it profitable?

Let’s break things down into simple terms so that all investors, no matter their experience level, can understand what’s going on.

What is Reliance Power?

The Anil Dhirubhai Ambani Group (ADAG), the largest business group in India, includes Reliance Power Shares. The company was established to design, build, and manage electricity projects both in India and abroad. Its objective was to rank among the nation’s biggest power generation companies.

One of the largest initial public offerings (IPOs) in India was started by Reliance Power back in 2008. At the time, the business attracted a lot of attention. However, following a solid start, things did not go as expected. The price of Reliance Power shares dropped sharply over time as a result of a number of difficulties, including debt problems, stopped projects, and poor financials..

Why Did Reliance Power Shares Jump 36% Now?

The 36% rally in Reliance Power shares surprised many in the share market. Here are some key reasons behind this sudden spike:

1. Heavy Buying by Investors

In the last few trading sessions, there has been a huge demand for Reliance Power shares. This heavy buying by investors pushed the share price sharply upwards. When demand for a stock increases and supply remains limited, the price goes up.

2. Positive News on Debt Reduction

Reliance Power had been struggling with a large amount of debt. But recently, there were reports that the company is actively reducing its debt burden. This includes selling assets, restructuring loans, and planning to raise fresh capital. These moves have given confidence to investors that the company is on a path to recovery.

3. Improved Market Sentiment

The overall share market sentiment has improved in recent weeks. With foreign and domestic investors putting money into Indian stocks, even older or struggling companies are getting attention. Reliance Power, being a well-known name, is also benefiting from this positive sentiment.

4. Speculation and Momentum

Sometimes, a stock starts gaining due to market speculation. Traders and short-term investors jump in to make quick profits. This creates momentum, and more people start buying the stock, which leads to sharp price movements. Reliance Power’s 36% jump may partly be due to such momentum buying.

How Did the Share Price Move?

The Reliance Power share price was trading around ₹20 per share in early May 2025. But within just a few sessions, it jumped over 36%, reaching close to ₹28. This sharp movement in a short period is rare and has caught the attention of the entire share market.

Market analysts noted a sudden rise in trading volumes. This means more people were buying and selling the stock than usual – a sign that investors are showing renewed interest in the company.

Should You Invest in Reliance Power Shares Now?

This is the most common question investors are asking after seeing the 36% rally. While the excitement is understandable, it’s important to think carefully before making any investment.

Here are a few things to consider:

1. Look at the Fundamentals

Even though the share price has gone up, it’s important to check the company’s financial health. Is the company making profits? Are the revenues growing? Is the debt under control? These are key questions you should ask before investing.

2. Don’t Chase the Rally

Buying a stock just because it has gone up is risky. Prices can come down just as fast. Wait and watch if the stock can hold its gains or shows signs of further improvement.

3. Understand Your Risk Appetite

If you are a long-term investor who can handle ups and downs, you may consider investing a small amount. But if you’re not comfortable with high-risk stocks, it’s better to wait for more clarity.

What Are the Experts Saying?

Many market experts are divided on Reliance Power’s comeback. Some believe this is the beginning of a turnaround story. They point out that the company is working on improving its financials and may benefit from India’s growing power demand.

Others caution that the 36% rally may be short-lived and driven more by speculation than solid business fundamentals. They advise investors to remain cautious and not get carried away by short-term movements in share price.

Lessons from Reliance Power’s Journey

Reliance Power’s rise and fall – and now possible comeback – offer important lessons for all investors:

• Past performance doesn’t guarantee future results – a stock that went down can bounce back, and vice versa.
  
• Do your own research – don’t invest based on hype or crowd behavior.
  
• Patience and timing matter – investing is not about making quick money but about building long-term wealth.
  

Conclusion

The recent 36% jump in Reliance Power shares has made investors take notice of this forgotten stock once again. While the rally is exciting, it’s essential to understand the reasons behind the move and evaluate whether it’s sustainable.

The share market can be full of surprises, and Reliance Power’s comeback is one such example. Whether this is the start of a new growth phase or just a short-lived spike remains to be seen.