CG Power, GE Vernova, Hitachi Energy India: Why power equipment stocks are rising amid subdued market

Power equipment stocks such as CG Power, GE Vernova T&D India and Hitachi Energy India, among others, traded in positive territory in afternoon deals on Thursday, August 27, after US President Donald Trump signed an executive order declaring a national emergency and banning the use of some foreign equipment ‌in the US electricity grid.

On Wednesday, Trump declared a national emergency over what his administration said were vulnerabilities in the country's bulk-power system, citing concerns that foreign-produced equipment could be exploited to threaten the US electricity grid.

The administration said the US power grid was critical to national defence, emergency services and the economy, while also highlighting its growing importance to advanced manufacturing, defence production, artificial intelligence and data centres.

News agency ANI reported, "Under the order, transactions involving foreign-produced bulk-power system equipment could be prohibited if the Secretary of Energy, in consultation with other Cabinet members, determined that they involved a "Covered Foreign Entity."

The restrictions applied to equipment that the administration believed posed an "undue risk of sabotage, subversion, unauthorised access, malicious remote action, or supply disruption" to the US bulk-power system.

The order covered equipment including substation transformers, large generators, industrial control systems, and battery energy storage systems. However, the White House Fact Sheet clarified that "The Order does not apply to facilities used for local distribution of electric energy," with the measures focused on the high-voltage transmission system, the ANI report added.

Why Indian power equipment stocks are surging

Power equipment stocks are in focus because, according to news reports that cited analysts, Trump’s order could shift part of the US grid-equipment supply chain away from Chinese/other foreign suppliers toward non-Chinese manufacturers.

Indian power equipment stocks are gaining on expectations that the US order could push utilities and grid developers to look for alternatives to Chinese-made equipment, creating opportunities for non-Chinese suppliers.

Indian companies with exposure to transformers, transmission and grid equipment could benefit from this potential shift in sourcing, especially as rising power demand from AI data centres, semiconductor plants and other industries is driving the need for new grid infrastructure.

However, this is currently an opportunity rather than an immediate order-flow benefit, as the actual impact will depend on the specific equipment and foreign suppliers the US ultimately restricts.

Stocks in focus

The stock was up 3.34% at ₹752.10 on the NSE.