Mumbai [India]: Reliance Power Ltd shares soared over 14% on Friday, touching a high of ₹50.70 apiece on the BSE, driven by strong buying interest and unusually heavy trading volumes. The surge came even as the company clarified its position regarding a recent SEBI show-cause notice related to its group firm, Reliance Infrastructure Limited.

Strong Market Momentum

Reliance Power’s rally was accompanied by robust trading volumes, with nearly 6 crore shares changing hands across exchanges. This is significantly higher than the company’s one-week and one-month average volume of about 2 crore shares, suggesting renewed investor interest in the counter.

At 10:25 AM, the stock was trading 8.64% higher at ₹48.29, maintaining its upward momentum through the morning session.

SEBI Notice and Company Clarification

Earlier this week, Reliance Power informed exchanges that it had received a Show Cause Notice from SEBI concerning Reliance Infrastructure’s exposure in CLE Private Limited, alleging possible regulatory violations.

In response, the Anil Ambani Group company issued a clarification on October 6, firmly denying any connection with the entity in question.

“The Company has ZERO exposure to CLE Private Limited. The Company shall take appropriate steps in the matter, as legally advised,” Reliance Power said in its filing.

This clarification appeared to reassure investors, triggering a renewed surge in buying.

Technical View

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, the stock has shown a strong bounce from key support levels.

“Reliance Power share price was forming a base around ₹44 since the last one week. The price has sharply rebounded from key support levels, up almost 9%. This bounce can extend with the possibility of ₹56 in the near term, while the recent lows around ₹44 remain crucial,” Bhosale noted.

Performance Snapshot

Despite recent volatility, Reliance Power has displayed impressive long-term returns:

  • Up 3% in the past month
  • Down 25% over three months
  • Up 24% in six months
  • Up 8% so far in 2025
  • Up 171% over two years
  • Up 1,642% in five years

The stock’s sharp rally on Friday reflects strong speculative sentiment and a possible shift in investor confidence, supported by the company’s legal clarity and technical recovery.

Conclusion

While the stock remains volatile, analysts suggest investors watch for sustained movement above ₹50 for confirmation of a longer-term uptrend. However, experts also caution that Reliance Power remains a high-risk, high-reward smallcap, and due diligence is advised before making fresh entries.