Exit Polls Impact: 7 BSE Power stocks surge to record highs; Adani Power, NTPC lead with gains up to 19%

Shares of power-related stocks enjoyed another day of bull run in today's trade, with the majority of stocks in the BSE Power index gaining between 4% and 19%. The market sentiment was bolstered by expectations that the government's emphasis on the power sector will continue, following exit polls indicating a decisive victory for the BJP-led NDA.

The exit polls suggest that the alliance will comfortably secure between 350 and 390 seats out of the 543 in the Lok Sabha, the lower house of India’s Parliament. The positive outlook for the power sector is driven by anticipated policy continuity and ongoing infrastructure investments under the potential third term of Prime Minister Narendra Modi. 

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Investors are optimistic about the government's focus on enhancing the power sector, which has been a cornerstone of its development agenda. This optimism translated into heightened demand for power stocks in today's trading session, propelling 7 out of the 13 constituents of the BSE Power index to reach new record highs.

Adani Power witnessed a remarkable uptick, with its shares soaring by 18.53% to attain a fresh record high of ₹895.85 per share. Following closely, Power Grid Corporation observed a surge of 13% in its share value, reaching an all-time high of ₹348.70.

Similarly, other prominent players in the sector, such as NTPC, JSW Energy, CG Power and Industrial Solutions, NHPC, and ABB India, also registered new all-time highs in today's trading session. Additionally, Adani Green Energy experienced a notable surge of nearly 13%, touching a fresh 52-week high.

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Moreover, several other stocks within the index, including Siemens, Adani Energy Solutions, Tata Power Company, Bharat Heavy Electricals, and Suzlon Energy, have witnessed gains ranging between 4% and 10%, further underscoring the bullish sentiment prevailing in the power sector. Overall, the BSE Power index has surged 8.1% to record an all-time high of ₹8,327 points. 

Record spike

On May 30, the country met a record maximum power demand of 250 GW, while the solar demand also touched an all-time high of 234.3 GW, reflecting the combined impact of weather-related loads and growing industrial and residential power consumption in these areas, according to the Ministry of Power.

The increased focus on infrastructure development, urbanisation, industrialisation, and rural electrification initiatives has bolstered the demand for electricity across residential, commercial, and industrial sectors.

To meet the growing power demand, the government announced plans for an additional 80 GW of thermal capacity. India's power generation heavily relies on its extensive coal reserves, ranking as the fourth largest globally. Coal-based power currently constitutes over half of the country's existing capacity, standing at 425.406 GW.

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Concurrently, the government is actively pursuing strategies to diversify the energy mix and reduce dependence on thermal power. In recent years, there has been a concerted push towards bolstering the renewable energy (RE) sector. 

Ambitious targets have been set to ramp up non-fossil fuel capacity, aiming to install 500 GW of renewable energy capacity by 2030. Furthermore, the government has set its sights on achieving net-zero emissions by 2070 and aims to fulfill 50% of the nation's electricity requirements through renewable sources by 2030. 

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These initiatives underscore a broader commitment to sustainability and environmental stewardship while meeting the burgeoning energy needs of the nation.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.