Power Stocks Shine Amid Indian Market Volatility
Market Overview
The Indian stock market has experienced significant fluctuations following the fallout from the Iran War on February 28. Investors have faced substantial losses, totaling Rs 51.7 lakh crore since the onset of the conflict in the Middle East. However, in contrast to this downturn, power sector stocks have shown remarkable resilience, with major players like Adani Power and Waaree Renewable Technologies witnessing gains of 30-40%.
Despite rising crude oil prices and fears that an energy crisis could hinder India's economic growth and delay earnings recovery, power stocks have thrived. On Monday, several key stocks, including Adani Power, NTPC, PFC, BHEL, Tata Power, Hitachi Energy India, Siemens, Thermax, and Torrent Power, reached their 52-week highs during intraday trading on the BSE.
Other notable stocks such as JP Power, Adani Energy, NTPC Green, GRE Renew Enertech, Reliance Power, Adani Green, RattanIndia Power, Globus Power, KPI Green Energy, and NLC India also saw increases of over 15%. Analysts at Choice Broking expressed optimism regarding NTPC shares, noting that the stock is maintaining a higher high–higher low pattern, indicating a strong long-term uptrend. They highlighted that NTPC is trading well above its key short- and long-term EMAs, showcasing robust trend strength.
According to a report from Axis Securities, India's electricity demand surged to 425 BU in Q4FY26, reflecting a 1.9% year-over-year increase and an 8% quarter-over-quarter rise, driven by pre-summer heat that pushed peak demand to 245 GW in January.
Following the rise in crude oil prices due to uncertainties surrounding US-Iran negotiations, shares of oil marketing companies (OMCs) displayed resilience. Bharat Petroleum Corporation experienced a decline of 1.55%, while stocks of Indian Oil Corporation Limited and Hindustan Petroleum Corporation Limited fell by less than 1% each.
On Monday, the Indian stock market opened lower amid the ongoing uncertainty regarding US-Iran discussions, which have contributed to rising crude oil prices. The GIFT Nifty indicated a slightly positive start for Indian markets. By 11:50 AM, the indices showed recovery, with the Sensex up by 398.58 points or 0.51% at 78,892.12, and Nifty rising by 67.30 points or 0.28% at 24,394.40.