Since the announcement of the Union Budget 2024, Reliance Power shares have experienced a significant upward trend. On July 23, 2024, the stock closed at Rs 26.94 per share on the NSE. In the days following the budget, the shares consistently reached new 52-week highs, climbing from Rs 26.94 to Rs 34.54 per share, marking an approximate 30 percent increase over eight consecutive sessions.Market experts attribute this surge to Reliance Power achieving debt-free status on a standalone basis. The company settled its Rs 800 crore dues, positioning itself more competitively among private power sector companies for FY25. The 2024 budgets emphasis on growth in power and infrastructure is expected to strengthen the companys balance sheet in the upcoming fiscal year, driving increased investor interest in Reliance Power shares.Challenges ahead despite financial improvementDespite the positive financial development, experts caution that Reliance Power still faces challenges regarding its order book. These issues are anticipated to be addressed in the coming quarters of the current fiscal year. Nonetheless, the companys newfound financial stability has sparked optimism among investors.Market capitalisation soarsAs of August 2, Reliance Powers market capitalisation stood at Rs 13,886.67 crore, up from Rs 10,813.68 crore on July 23. This growth reflects the markets positive response to the companys improved financial position and future prospects.
