TOI.inRelated
NEW DELHI: Shares of power companies , , and NTPC rose on the Bombay Stock Exchange (BSE) on Monday. While there are no new policies on the anvil in near future, experts said expectations of growth in power demand after several states began unlocking is a plausible reason.
Adani Power stock rose 20%, Torrent Power 7%, CESC 6.3% and Tata Power 5% at close on Monday. Shares of state-run Power Grid Corp increased 4.44%, and BHEL and NTPC by 4% each. ABB stock increased 2% and NHPC 1%.
“Power demand is increasing and due to lockdown relaxations in many states, discom collections are expected to increase,” a government official said adding the Rs 3 lakh crore distribution sector scheme announced in Budget is in works.
Electricity demand has recovered gradually since last week of May. India's electricity demand shrank for nearly 10 days of May even compared with the same period of last year, when the nation enforced a strict lockdown across states.
Electricity demand — a key economic indicator with a 20% weigh in the Index of Industrial Production — started dipping on May 18 when cyclone Taukate made its landfall on the west coast.
In March this year, the country was projected to witness unprecedented electricity demand this summer, prompting the authorities to gear up to ensure availability of adequate power generation capacity, coal stocks and railway infrastructure along with grid preparedness.
Shares of power companies had shot up on stock markets as the peak-hour electricity demand was expected to cross 215 GW on the back of revival of economic activity and onset of early summers.
However, experts said demand had taken a massive hit due to the second wave of Covid-19, lockdowns and cyclones.
Adani Power stock rose 20%, Torrent Power 7%, CESC 6.3% and Tata Power 5% at close on Monday. Shares of state-run Power Grid Corp increased 4.44%, and BHEL and NTPC by 4% each. ABB stock increased 2% and NHPC 1%.
“Power demand is increasing and due to lockdown relaxations in many states, discom collections are expected to increase,” a government official said adding the Rs 3 lakh crore distribution sector scheme announced in Budget is in works.
Electricity demand has recovered gradually since last week of May. India's electricity demand shrank for nearly 10 days of May even compared with the same period of last year, when the nation enforced a strict lockdown across states.
Electricity demand — a key economic indicator with a 20% weigh in the Index of Industrial Production — started dipping on May 18 when cyclone Taukate made its landfall on the west coast.
In March this year, the country was projected to witness unprecedented electricity demand this summer, prompting the authorities to gear up to ensure availability of adequate power generation capacity, coal stocks and railway infrastructure along with grid preparedness.
Shares of power companies had shot up on stock markets as the peak-hour electricity demand was expected to cross 215 GW on the back of revival of economic activity and onset of early summers.
However, experts said demand had taken a massive hit due to the second wave of Covid-19, lockdowns and cyclones.
Read More News on
Download The Economic Times News App to get Daily Market Updates & Live Business News.