Power stocks: There is tremendous enthusiasm among investors regarding the shares of power generators and related companies. Shares of Power Generator and its related companies were in focus on Friday as on April 1. On Friday, shares of the power sector including Adani Power, Tata Power, BHEL (BHEL), NTPC were heavily buying.
The S&P BSE Power Index had hit a 14-year high in intra-day trade on hopes that better demand would drive earnings growth in the sector. Shares of Adani Power, Bharat Heavy Electricals (BHEL) and NTPC were the biggest gainers. On Friday, the shares of these companies saw a rise of 5 per cent to 10 per cent. While Power Grid Corporation, Tata Power, Torrent Power and JSW Energy ran in the range of 2 per cent to 4 per cent on the BSE.
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Record rise in power stocks
The S&P BSE Power Index was one of the top sectoral gainers. On Friday, the Power Index ended 3.2 per cent higher at 4,171 on the BSE. While the S&P BSE Sensex had gained 1.2 per cent. The Power Index hit an intra-day high of 4,187.47 and was trading at its highest level since January 2008. Earlier it had hit an all-time high of 4,929.34 on January 1, 2008.
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Most focus on Adani Power
These days the shares of Adani Power are taking flight. Shares of Adani Power closed at Rs 203.60, up 10% in the trading day on Friday. On Friday, the company’s shares reached a record level and closed in the upper circuit. Shares of Adani Power have rallied 64% in the last 8 trading days. It has gained 104 per cent in the past three months, compared to a 1.6 per cent gain in the S&P BSE Sensex. At the same time, this year in 2022 according to YTD, it has given a return of 100%. January 3 was the first trading day of the year when the company’s shares closed at Rs 101.30, now it has crossed 200.
Shares of these power companies rise
Shares of Adani Power were the biggest gainer of 10% on Friday. Shares of BHEL closed 9.3% higher. On the other hand, NTPC shares closed up 5.9%, Power Grid 3.5%, Tata Power 2.5%, Torrent Power 1.9% and JSW Energy 1.8%.
What do analysts say?
According to ICICI Securities, “India witnessed the biggest power deficit since October 1 from March 1 to March 30. March saw a tremendous increase in power demand, as India held fuel auction plans for utilities to cut coal supplies in the non-power sector and reduce inventory. Power sector stocks have risen due to increased demand for power.
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What does this report say
At the same time, according to a PTI report, India’s electricity consumption steadily increased to 126.12 billion units (BU) in March, a year-on-year increase of 4.6 percent. The increase in power consumption follows the onset of summer and easing of lockdown restrictions by states. According to the power ministry data, the electricity consumption was 120.63 BU in March 2021 as against 98.95 BU in March 2020. Electricity consumption in February also increased by 4.6 per cent in a year. Peak power demand was met in a single day or month’s highest supply of 199.29 GW as compared to 170.16 GW in March 2020 and 185.89 GW in March 2021.