Power shares in focus; Torrent, Reliance, Adani Power up 5%

At 10:17 am, the S&P BSE Power index was up 1.6% as compared to 0.05% rise in the S&P BSE Sensex.

Shares of power generation companies such as Reliance Power, Torrent Power and Adani Power are in focus and rallied by over 5% each in otherwise subdued market.

According to Moody’s Investor Service, Indian power producers’ consumption of costly imported coal has fallen thanks to a sharp increase in domestic coal production, a credit positive.

However, the sector faces persistent challenges including uneven gas supplies, cost over-runs at some generating plants, and limited off-take demand from financially weak distribution utilities. Some generators are also locked into power purchase agreements (PPAs) that have become unviable because they do not allow rising fuel costs to be passed through. All of these factors will continue to weigh on the sector’s credit profile, rating agency said in a report. CLICK HERE TO READ FULL REPORT.

At 10:17 am, the S&P BSE Power index was up 1.6% as compared to 0.05% rise in the S&P BSE Sensex.

Among the individual stocks, Reliance Power has rallied 7% to Rs 52 on the BSE. Adani Power surged 6.5% to Rs 30.55, followed by Torrent Power (6% at Rs 183), JSW Energy (5% at Rs 93.55) and Tata Power (3% at Rs 71.45).