Shares of Reliance Power on Friday extended their gains to hit a fresh 52-week high of Rs 23.75. The stock jumped as much as 17.11 per cent in intraday deals today from its previous close of Rs 20.28. In just two trading sessions, it has moved 37 per cent higher.
As of 12:12 pm, Reliance Power was trading 9.96 per cent up at Rs 22.30. On NSE, the stock was up 10.92 per cent at Rs 22.35.
Market capitalisation (m-cap) of RPower rose to Rs 7,752.29 crore on BSE. Total 455.90 lakh shares of the firm changed hands amounting to a turnover of Rs 101.23 crore.
On August 29, Business Today had reported that foreign institutional investors (FIIs) were returning in the Indian equity markets. And, Reliance Power was among the 32 listed stocks in which FIIs had increased their stake by at least 3 per cent in the last one year.
Usually, market watchers consider FII buying as a bullish signal for a stock selection, and, in the past, stocks where FII has increased their stake have performed well and provided better returns to the investors.
Some investors suggest FII buying as a good parameter for stock selection. Although, it is not the only parameter as many other factors are also required to be analysed, for instance, company's financial performance, management vision, capability and competitive advantage.
Earlier in July this year, RPower shareholders had turned down a special resolution to monetise its assets during the annual general meeting (AGM). All special resolutions were required to be approved by 75 per cent or more votes of shareholders.
A BSE filing by the company showed that 72.02 per cent of votes were cast in favour of the resolution, while 27.97 per cent voted against it.
Thus, the special resolution could not be passed in the AGM.
(With inputs from PTI)
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