Power stocks surge on bright outlook

Shares of Tata Power, Torrent Power, NHPC and Power Grid are up in the range of 2% to 6% in a weak market today.

This comes on the back of expectation of strong demand for power in 2024. Experts point out that the demand for power is rising in India and supply constraints are becoming complex.

In fact, in December 2023, power generation increased 4.5% year-on-year to 135 billion units. This growth was on a high base of December 2022 – when the power generation rose 14%.

Also, experts state that significant investment for increasing the renewable energy capacity would drive growth in 2024. The central government made an allocation of more than 28,000 crore for the power sector including renewable energy in the interim budget. This is 50% higher compared to the revised estimate for FY23.