Power is in focus in trade today. Power Grid Corporation shares rose 4.5% to hit a 52-week high of Rs 366.25 to be the top gainer in the Nifty 50. Reliance Power shares are locked in a 5% upper circuit as well, hitting a fresh 52-week high. Moreover, the rise in Power Grid stocks highlights the company’s robust performance amid a recovering economy. #PowerGridStocks
Ajit Mishra, Senior Vice President of Research at Religare Broking, notes that continuous growth reforms in renewable energy trigger the rally in power stocks. Additionally, the recent announcement of NTPC Green Energy’s listing has contributed to this momentum. Furthermore, the rising demand for power in the country cannot be overlooked.
The sector is gaining attention due to reports about the government’s plans for market coupling of power exchanges. According to media reports, bids from all power exchanges will be combined. A uniform price will then be discovered after matching those buy and sell bids.
“Constant reforms and recent IPO announcements are moving this rally,” added Mishra.
In a research report, Motilal Oswal said that the power demand growth will accelerate at a pace of 7% against a growth of 5%. “With a robust GDP growth outlook for India and the emergence of new demand drivers (electric vehicles, data centres, electrification of energy demand), we believe power consumption in India can compound at 7%+ over the next decade (currently 8-9%).”
Furthermore, this upward trend in Power Grid stocks could indicate a broader market rally. Analysts attribute this surge to strong financial results and strategic initiatives. As a result, investors are increasingly optimistic about future growth prospects. #PowerGridStocks
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