BSE Power index hits 16-month high; Siemens, Thermax soar 6%

Thus far in April, the BSE Power index has outperformed the market by soaring 13 per cent compared to a 8.5 per cent rise in the BSE Sensex.

BSE Power index movement

  Shares of power generation, distribution and related companies were in focus with the BSE Power index hitting a 16-month high at 7,563.73, surging 3 per cent in Wednesday's intra-day trade on rising power demand.  Thus far in the month of April, the power index has outperformed the market by soaring 13 per cent, compared to a 8.5 per cent rise in the BSE Sensex.  The BSE Power index quotes at its highest level since December 2024. It had hit a record high of 8,795.65 on September 27, 2024.  Among individual stocks, Thermax and Siemens rallied 6 per cent each. Tata Power Company, Power Grid Corporation, NHPC, JSW Energy and CG Power and Industrial Solutions were up in the range of 3 per cent to 4 per cent in today's intra-day deals.  In the past month, the stock price of Thermax zoomed 25 per cent, while Hitachi Energy India and Siemens surged 18 per cent and 12 per cent, respectively. In comparison, the BSE Sensex was up 3.4 per cent during the same period.

  Why are power stocks outperforming the market?

  India's electricity demand reached 425 BU in the January to March 2026 quarter (Q4FY26), up 1.9 per cent year-on-year (YoY) and 8 per cent quarter-on-quarter (QoQ) as the transition to pre-summer heat drove peak demand to 245 GW in January. While IEX DAM prices averaged ₹3.77/KWh - a 13 per cent decline from the previous year—they rose 13 per cent sequentially in anticipation of a further demand uptick in Q1FY27.  Analysts at Axis Securities anticipate a pickup in power demand in Q1FY27, led by a seasonal uptick. Peak power demand recovered sharply from 216 GW in November 2025 to 241 GW in December 2025, before reaching the 11MFY26 high of 245 GW in January 2026.  ALSO READ | Adani Power, NTPC among 5 power stocks that can rally up to 24%: Analysts  The Central Electricity Authority (CEA) forecasts a peak demand requirement of 366 GW by FY32, necessitating capacity enhancements across both thermal and renewable energy sources (RES). India aims to increase its installed capacity to 610 GW by FY27 and 900 GW by FY32. Total installed capacity stood at 529 GW as of February 2026, the brokerage firm said.  Meanwhile, there is a global consensus on transition from La Niña to El Nino-Southern Oscillation (ENSO)-neutral in April, with ENSO-neutral favoured through May–July 2026 (>60 per cent chance). According to IMD’s long-term forecast on April 13, the 2026 southwest monsoon seasonal (Jun-Sep) rainfall is most likely to be below normal (95–90 per cent of the Long Period Average (LPA)). It further suggests the development of El Niño conditions during the SW Monsoon season. El Nino years have marked spikes in power demand, analysts at JM Financial Institutional Equities said.  India's peak power demand is projected to increase to 458 GW by FY32, from approximately 275 GW as of mid FY25, reflecting strong underlying growth in electricity consumption and accelerated renewable capacity deployment, with a target of about 500 GW by 2030. To meet this demand trajectory, the Government of India (GoI) finalised a transmission expansion plan under the National Electricity Policy (NEP) 2022–32, entailing a total capital outlay of ₹9.16 trillion, of which ₹6.60 trillion pertains to the Inter-State Transmission System (ISTS), with the balance allocated to intra-state networks,  Care Edge Ratings said.  Meanwhile, India's power sector is entering a massive capex cycle, with installed capacity projected to rise from ~520 GW to ~900 GW by FY32E. This expansion creates a ₹12-13 trillion lending opportunity for specialized financiers including Power Finance Corporation (PFC) across generation (₹8-9 trillion), transmission (~₹1 trillion), and distribution (~₹2 trillion) projects.  Beyond traditional power, growth is supported by a 47 GW storage mandate and a strategic pivot into infrastructure financing. Given the policy roadmap for 900+ GW of nonfossil capacity by FY36, this cycle is expected to extend into next decade, ensuring robust long-term loan growth and visibility for PFC due to its dominant market share and policy linkages, ICICI Securities said.  Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.