Power Stocks Surge on Robust Growth Outlook
Shares of state-owned utilities NTPC and Power Grid hit an all-time high, while JSW Energy was up 5 percent on September 20 on high-volume trade, buoyed by a robust growth outlook for the sector.
The surge was triggered by a Jefferies report recommending NTPC, Power Grid, and JSW Energy as its top picks. The brokerage firm said that India’s capex-driven GDP growth is expected to lead to a rise in power intensity and the annual thermal plant-load factor is expected to cross 80 percent by FY25. Jefferies expects the capex CAGR in the power sector to rise 9x at 20 percent in the period of FY23 to FY26 versus a mere 2.2 percent recorded in the period FY10 to FY20. Overall, the brokerage expects investments in power generation, transmission, and distribution to rise 2.2x to $280 billion between FY24 and FY30.
The robust growth outlook for the power sector is supported by a number of factors, including:
- India’s growing economy and population are expected to drive demand for electricity.
- The government’s focus on renewable energy and infrastructure development is also expected to boost the sector.
- The power sector is expected to benefit from the government’s various initiatives to promote electric vehicles and smart grids.
Investors are optimistic about the prospects of the power sector and are betting on stocks like NTPC, Power Grid, and JSW Energy to benefit from the sector’s growth.
- 22 Sep
NBCC shares trade higher on Rs 100 crore work order from SAIL
NBCC shares were trading 3 percent higher on September 22 after the company announced having bagged a work order worth Rs 100 crore from SAIL. This is the fourth order-win announced by the company in this month, the total value of the same being Rs 450 crore. NBCC is a public sector undertaking engaged in the business of construction and real estate development. The company specializes in providing project management, consultancy and engineering services for civil construction, infrastructure development, and real estate projects.
- 22 Sep
Glenmark Pharma stock falls on stake sale in Glenmark Life Sciences
Glenmark Pharma stock fell after the company announced it would sell a 75% stake in its subsidiary Glenmark Life Sciences to Nirma. Analysts expect the stake sale to benefit Glenmark Pharma, as it will transition from a net debt position to a cash surplus position. This is expected to have a positive impact on the company's return ratios over the next two to three years.
- 22 Sep
Berger Paints Shares Hit 52-Week High After Turning Ex-Bonus
Berger Paints shares surged 6% to hit a 52-week high after turning ex-bonus on the record date for the issue of bonus shares in the ratio 1:5. The company posted a net profit of Rs 326.3 crore in the April-June quarter of FY24, up 39% year-on-year, on revenue of Rs 2,739.7 crore, up 10% year-on-year. The company expects to get net cash positive by the end of this fiscal year and expects to end the year with double-digit revenue growth on strong demand outlook.
- 22 Sep
Market Update for September 22, 2023
IdeaForge Tech up 3.4% on order RVNL up 3% on highway MoU JSW Steel up 0.4% on sale ICICI Lombard down 1.6% on CEO exit ICICI Bank down 1% on healthcare investment NHPC up 1.3% on extended additional charge Kalyani Forge up 3.2% on new MD IRB Infra up 2.5% on road project closure
- 22 Sep
Lux Industries Shares Down 3% After Income Tax Raid
Lux Industries shares fell 3% on September 22 after news emerged that the Income Tax department had conducted searches at the company's premises in Kolkata and alleged a tax evasion of Rs 200 crore. The company has confirmed the searches and is extending full support.