The BSE strength index reached a 14-year high; Adani Power enlarges 64% in 8 days

Power generation and related companies were in focus on Friday as the S&P BSE Power Index hit a 14-year high in intraday trade, on expectations that improving demand will spur sector earnings growth.

Adani Power, Bharat Heavy Electricals (BHEL) and NTPC are all up between 5 percent to 10 percent, while Power Grid Corporation, Tata Power, Torrent Power and JSW Energy are all up in the 2 percent to 4 percent range on Mad cows.

The S&P BSE Power Index, one of the biggest sectoral gainers, settled 3.2 percent higher at 4,171 on BSE, compared to a 1.2 percent rise on S&P BSE Sensex. The Force Index recorded an intraday high of 4,187.47 and was trading at its highest level since January 2008. Earlier, it had touched an all-time high of 4,929.34 on January 1, 2008.

India experienced its worst electricity shortage from March 1 to March 30 since October. Rising energy demand in March forced India to cut coal supplies to the non-energy sector and set up fuel auction plans for utilities due to falling stocks. “The March deficit of 574 million kilowatt-hours was 0.5 percent of total demand or half of the 1 percent deficit in October,” ICICI Securities said in a note.

According to a report by PTI, India’s energy consumption grew steadily to 126.12 billion units (BU) in March, up 4.6 percent year-on-year. The surge in energy consumption reflects the effect of the early start of summer and the easing of lockdown restrictions by states.

According to DOE data, energy consumption was 120.63 BU in March 2021 compared to 98.95 BU in March 2020. Energy consumption in February also grew by 4.6 percent in the year.

“Peak energy demand or highest supply in a single day rose to 199.29 GW per month compared to 170.16 GW in March 2020 and 185.89 GW in March 2021,” the PTI report added. click here

Among the individual stocks, Adani Power hit a record high of Rs 203.55, closing at 10 per cent of the top circle in BSE. The stock is up 64 percent in the past eight trading days. Over the past three months, it’s up 104 percent, compared to a 1.6 percent increase in S&P BSE Sensex.

Adani Power reported a consolidated net profit of Rs 218.49 crore for the third quarter of FY22 (Q3 FY22). The company incurred a loss of Rs 288.74 crore while the total income was Rs 5,593.58 crore as compared to Rs 7,099.20 crore in the same period last year.

Dear Reader,

Business Standard has always strived to provide the latest information and commentary on developments that matter to you and that have broader political and economic implications for the country and the world. Your continued encouragement and feedback on how we can improve our offerings has made our resolve and commitment to these ideals even stronger. Even during these challenging times brought about by Covid-19, we continue our commitment to keeping you updated with trusted news, authoritative opinions and insightful commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more, so we can continue to bring you more quality content. Our subscription form has seen an encouraging response from many of you, who have subscribed to our content online. Further subscribing to our online content can only help us achieve our goals of providing better and more relevant content. We believe in free, fair and credible journalism. Your support with more subscriptions can help us practice the journalism we are committed to.

Support quality press and Subscribe to Business Standard.

digital publisher

Leave a Reply

Your email address will not be published. Required fields are marked *