Shares of Reliance Infrastructure Ltd fell sharply in Wednesday's trading session. The stock slumped 20 per cent to hit its lower price band of Rs 227.40. Today's plunge in the share price came after it was reported that the Supreme Court of India has overturned its prior ruling that compelled the Delhi Metro Rail Corporation (DMRC) to pay an arbitration award of around Rs 8,000 crore to Reliance Infra's subsidiary, Delhi Airport Metro Express Pvt Ltd (DAMEPL).
In response, Reliance Infra said the said order does not impose any liability and the company has not received any money from DMRC or DAMEPL under the arbitral award.
Technical analysts were largely 'bearish' on the counter. Support could be seen at the Rs 210-200 zone.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Reliance Infra's stock nosedived 20 per cent today post its recent stellar rally, signalling a sign of caution in the near period. For now, Rs 210-200 is likely to cushion the blip, while a further correction might disrupt the intermediate trend. On the higher end, until it reclaims Rs 260 subzone, cautious stance is warranted."
AR Ramachandran from Tips2trades said, "Reliance Infrastructure looks bearish on daily charts with strong resistance at Rs 280. A daily close below support of Rs 225 could lead to a downward target of Rs 193 in the near term."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 214 and resistance at Rs 241. A decisive close above Rs 241 level may trigger a further upside till Rs 250. The expected trading range will be between Rs 250 and Rs 210 for a month."
Bourses BSE and NSE have put the securities of Reliance Infra under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
A bench headed by Chief Justice DY Chandrachud allowed the curative plea of the DMRC against the dismissal of its revision plea against a 2017 arbitral award.
CJI Chandrachud said that the earlier judgment of the court resulted in miscarriage of justice. He also ordered the proceedings in the execution petition filed by Delhi Airport Metro in the Delhi High Court to be discontinued and directed all amounts paid by DMRC to Delhi Airport Metro to be refunded.
The Delhi Airport Metro Express had won the arbitration award DMRC in 2017. It had argued that running trains on the airport line was not viable due to structural defects in the viaduct made by the DMRC. In September 2021, the top court upheld the arbitral award.
In November 2021, the Supreme Court dismissed a review petition filed by DMRC in the case, and subsequently in August 2022, DMRC filed a curative petition in the Supreme Court against the arbitral award.