Jaiprakash Power Ventures (JP Power) shares dropped 8.5% due to heavy profit-booking after a recent rally. The surge was driven by optimism surrounding the Adani Group’s acquisition plan for Jaiprakash Associates, a key shareholder.
Shares of Jaiprakash Power Ventures (JP Power) slipped sharply on Friday, November 21, giving up a big chunk of the gains from its recent rally. The stock fell up to 8.5% to Rs 19.79 on the BSE as traders rushed to book profits after the counter surged nearly 29% over the previous two sessions.
Adani-JAL Deal Had Sparked Optimism
The rally earlier this week was driven by news that the Adani Group had edged out Vedanta to win creditor approval for its Rs 14,535-crore acquisition plan for Jaiprakash Associates (JAL). Since JAL owns about 24% of JP Power, the market saw the development as a potential boost for the power company’s long-term prospects, triggering a wave of speculative buying.
By 10:30 am, around 1.34 crore JP Power shares had changed hands on the BSE, indicating high activity even as the stock corrected. This was only slightly below the two-week average volume of 1.75 crore shares.
Market Experts Point to Profit Booking
Analysts say Friday’s decline is more a case of the market cooling off rather than a sign of deeper trouble. Harshal Dasani, Business Head at INVAsset PMS, said the selling looked like a natural pause after an overstretched rally.
“The 8% slide in JP Power looks less like a structural reversal and more like the market catching its breath. The stock has rallied sharply over the past few weeks, and when a counter runs ahead of its fundamentals, profit-taking becomes almost mechanical,” he explained.
Dasani added that the pullback is being driven mainly by traders unwinding momentum positions, while long-term investors appear unfazed. With the initial buzz around the Adani deal normalising, some buyers have stepped aside, allowing the stock to drift lower.
‘Healthy Correction,’ Say Analysts
The expert believes the correction may actually be constructive. “In that sense, today’s correction is healthy. If the company delivers on operational improvements, this volatility will simply be remembered as routine consolidation after an overextended rally,” Dasani added.