CG Power, Cummins, Thermax, Hitachi Energy rally up to 9%, hit record highs

Shares CG Power and Industrial Solutions, Cummins India, Thermax, Hitachi Energy India rallied up to 9 per cent on the BSE on Thursday, hitting their respective record highs in the intraday trade on healthy demand outlook.

Shares of Siemens, for instance, surged 5 per cent to Rs 4,954.50, trading close to its record high level of Rs 4,973.55 touched on March 11, 2024. In comparison, the S&P BSE Sensex was up 0.7 per cent at 72,689 at 03:11 PM.

India's economy is expected to grow on the back of increase in capex spending in infrastructure, increase in private capex spending in new age technologies such as semiconductors, fuel cells, batteries, data centers and hydrogen and increased capacities and strong drive towards decarbonization.

With increased economic activity in the country, the expectations are that India will double its generation and transmission capacities in the next couple of years. The Government has already set a target to have an installed capacity of 500 GW of Renewable Energy to cover roughly 50 per cent of India's energy requirements.

"Measures are being taken to drive demand side management through energy efficiency measures in the distribution network through installation of Control Centers, SCADA systems, E-metering, etc. The electrification of the Indian Railways is being done at a fast pace while the regulatory environment conducive for increased adoption of e-vehicles in the country are being created," Siemens said in its FY2023 annual report.

Meanwhile, according to Cummins India, the investment by India in infrastructure continues to bode well for the company. The powergen market will see a demand shift with an increasing focus on CPCB IV+ compliant products. However, upcoming quarters are likely to see mixed demand for CPCB II and CPCB IV+ products, as CPCB II products are allowed to be sold till June 30, 2024. Shares of Cummins India were up 3 per cent to Rs 2,893.95, also its record high on the BSE.

Thermax, too, stands to benefit from the investment in clean energy, sustainability, decarbonisation, normalisation of the international market and impetus on cleaner air and water, HDFC Securities said. The stock hit a new high of Rs 3,982, ralling 8 per cent in the intraday trade today.

The Indian economy continues to maintain its growth momentum, and this also is expected to drive a proportionate increase in the country's energy usage. In the current financial year 2023-24 (FY24), the market has already witnessed 18 power transmission projects, which provide promising opportunities. Furthermore, high-growth segments like rail, metro and other infrastructure projects are additional growth drivers, said Hitachi Energy India. The stock is the top gainer among the pack after it surged 9 per cent to hit a new high of Rs 7,250 in the intraday trade.