BSE Power index surges nearly 5%; NTPC, Adani Power, ABB hit new peaks

Shares of power and its related companies were on a roll, with the S&P BSE Power index surging 5 per cent and hitting a new high of 5,384.21 in Tuesday’s intra-day trade led by Adani Group stocks amid expectations of strong power demand due to improvements in economic activities.

At 01:19 PM; S&P BSE Power index, the top gainer among sectoral indices, was up 4 per cent, as compared to 0.46 per cent rise in the S&P BSE Sensex. In the past two months, the power index has surged 19 per cent, while in nine months, it zoomed 59 per cent.

Among individual stocks, Adani Green Energy (AGEL) was locked in the 20 per cent upper circuit at Rs 1,348. In the past two trading days, the stock has zoomed 31 per cent.

Adani Energy Solutions surged 18 per cent to Rs 1,064 in intra-day trade today and it has rallied 24 per cent in the past two days. Adani Power hit a new high of Rs 501, and has soared 8 per cent in intra-day trade today. It jumped 14 per cent in the past two days and zoomed to 196 per cent in the past nine months.

AGEL is India’s largest and world’s leading renewable energy solutions partner enabling the clean energy transition. AGEL develops, owns, and operates utility-scalegrid connected solar, wind and hybrid renewable power plants.

The company today announced its plans to provide funding of $1.36 billion to boost its construction financing framework to $ 3 billion backed by a consortium of renowned international banks. The green loan facility will help enable the development of AGEL, the world's largest renewable energy (RE) park, at Khavdain Gujarat.

Besides Adani Group stocks, NTPC too hit a new high at Rs 284.35, up 3 per cent, while ABB gained 2 per cent to Rs 4,730, also touching its new peak on the BSE in intra-day trade today.

NTPC has set out an aggressive renewable capacity addition plan to the tune of 16,000 MW over FY24-FY26, which will scale up the green portfolio of the company and lead to rerating of the stock. Per year addition of 4000-5000 MW of renewable capacity and strong growth in regulated equity in the conventional thermal portfolio, analyst at ICICI Securities estimate EBITDA and PAT to grow at 16.1 per cent, and 16 per cent CAGR respectively over FY23- 25E.

Meanwhile, the government's focus to attain ‘Power for all’ has accelerated capacity addition in the country along with expansion and strengthening of power transmission and distribution networks. Demand for electricity in India is expected to grow at a sustained pace given the government’s massive push towards ‘Make-In-India’, PLI (Production Linked Incentive) Scheme, increasing industrialization,improving incomes and standards of living, and push for increasing the penetration of electric vehicles in the transportation sector, among others.

India will become the world's third-largest economy by 2030, a report released by S&P Global Ratings said on Tuesday. In 2026-27, India's gross domestic product (GDP) is expected to grow 7 per cent. India is currently the fifth largest economy in the world behind the US, China, Germany and Japan.

In its"Global Credit Outlook 2024", S&P said that India would be the fastest-growing emerging market in the world. Still, its paramount test will bewhether the country can become the next big global manufacturing hub. CLICK HERE FOR FULL REPORT