Power stocks rally on favorable ruling from CERC

Adani Power,Tata Power, JSW Energy,NHPC and Reliance Power are up 4-15% on BSE.

Shares of power generation companies have rallied up to 15% in morning deals after Adani Power got a favorable ruling from the power sector regulator Central Electricity Regulatory Commission (CERC) on the issue of supply of electricity from its imported coal-based power project at Mundra in Gujarat.

Adani Power has rallied 15% to Rs 49.90 on back of heavy volumes on the Bombay Stock Exchange (BSE). The stock opened at Rs 44.45 and has seen a combined 6.21 million shares changing hands on the counter till 1014 hours against an average 3.35 million shares that were traded daily in past two weeks.

Among the other individual stocks Tata Power has surged 6% to Rs 101, followed by JSW Energy is up 5% at Rs 60.40, while NHPC and Reliance Power are up 4% each at Rs 21.55 and Rs 68 respectively.

The BSE power index, the largest gainer among sectoral indices, is up 2.2% compared to 0.12% fall in benchmark Sensex.

“CERC has allowed a variable compensatory tariff to be offered to Adani Power till the fuel situation stabilizes,” the Mint newspaper report suggests.

Adani Power had approached the CERC to consider increases in power tariffs after customers in Haryana and Gujarat declined to pay higher rates for the electricity generated from its imported coal-based plant in Gujarat.

Tata Power has also approached CERC to consider increase in its power tariffs after customers declined to pay higher rates for the electricity generated from its imported coal-based Mundra plant in Gujarat.