Reliance Power trades 6.6% lower; Markets lose over 4 percent

Reliance Power disappointed investors on the day of listing. Market experts were expecting Reliance Power to list with a premium of 20 – 25 % compared to issue price. However, the Reliance Power stock opened at Rs 530 and soon slipped into red. The stock touched a low of Rs. 386.

Stock markets are trading with a loss of 4 percent. The NSE Nifty touched a low of 4909. BSE Sensex was down by 572 points at 16,873.

Reliance Power was among most traded counters on both stock exchanges. 80 million shares were traded on National Stock Exchange till 11.50 p.m. Reliance Power was down by nearly 6.6% at Rs 420 compared to issue price. The stock has been trading at an average price of Rs. 432.

Reliance Power may offer good returns over a long period. However, the weak initial opening for the stock is negative news for Indian investors. Stock markets have corrected quite sharply and markets are very volatile in today’s trading session.

Power stocks were among worst hit in today’s trading session. Torrent Power was down by nearly 14 percent. Tata Power was down by 8 percent as Reliance Power was also trading below its issue price. Stock Analysts are also expecting a re-rating for Power Sector in coming weeks.

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