Powering stocks at new highs! Power Grid Corp and Reliance Power up 5% each
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.
According to Ajit Mishra, Senior Vice President of Research at Religare Broking the trigger point for the rally in power stocks is the continuous growth reforms in the renewable energy sector combined with the announcement of NTPC Green Energy’s listing. Also, the demand for power in the country can not be kept aside.
The sector is in focus on reports that the government is mulling for market coupling of power exchanges. As per media reports, bids from all power exchanges will be coupled together and a uniform price will 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%).”
Power Grid, Reliance Power Vs Nifty
The Power Grid shares have delivered a return of over 7% in the past five days while Reliance Power has hit the upper circuit for the last four consecutive days. It gave a return of more than 21% in the last five days.