power company shares
Due to the Iran-America war, there is an atmosphere of turmoil in the stock markets around the world, the effect of which is being seen in the Indian stock market also. But amid all this, on April 13, there was a boom in the Indian stock market, in which the shares of the power sector were seen significantly. The main reason for this is the increase in heat and increased demand for electricity. Today we are giving you information about the shares of some such companies in the power sector.
On April 13, while on one hand there was a huge decline in the Indian stock market, on the other hand there was a strong rise in the shares of power sector. The expectation of increase in demand for electricity in the coming summer season has attracted investors towards this sector. In view of the possibility of increase in electricity consumption especially in the evening, positioning in the market has already started.
Strength seen in shares of power companies
Shares of many companies in the power and energy sector closed sharply. Shares like Adani Power, JP Power, Reliance Power, Tata Power and Torrent Power saw a rise of 2% to 4%. Apart from this, shares like JSW Energy, NTPC and Suzlon Energy also showed positive trend. Strong trading volume further strengthened this rise.
Market decline amid global pressure
On the other hand, there was a decline in the stock market due to global tension. The failure of ceasefire talks between America and Iran and the rise in crude oil prices increased the concern of investors. Due to this, a sharp decline was recorded in Sensex and Nifty, due to which a risk-off environment remained in the market.
Government’s confidence on fuel availability
The government has clarified the situation that there is sufficient availability of coal, petrol, diesel and LPG in the country. According to officials, sufficient stock of coal is present in mines and power plants and the supply chain is running normally. This has reduced the possibility of any kind of interruption in power production.
Support received from data and long term factors
According to recent data, the demand for electricity has reached a record level in March. The total installed power generation capacity of the country has also exceeded 5.2 lakh MW. Apart from this, structural factors like increasing use of power equipment and uncertainty in global energy supply are also supporting the sector. Overall, due to seasonal demand, strong supply and positive data, power sector stocks are performing well despite the market decline. Investors may keep an eye on this sector in the coming times also.
