Analysts see more steam in power stocks as India eyes harsh summer

Coal reserves at power plants have also surged by 15 days to 43 million tonnes, marking the highest level in nearly three and a half years

The upward trajectory of the stocks of power-generation companies (gencos) is expected to continue, say analysts, as the impending severe summer heat is likely to drive up demand for electricity.

India’s peak power demand is projected to increase by at least 7 per cent year-on-year (Y-o-Y) in 2024, reaching 260 gigawatt (Gw), based on forecasts by the Central Electricity Authority, the governmental think tank focused on the electricity system’s development.

According to Anirudh Garg, a partner and fund manager at Invasset, India’s peak electricity demand is set to significantly rise from the record high of 243 Gw in 2023. To