BSE Power index soars 3%; BHEL, Adani, JSW Energy gain up to 8%; here's why

At 12:12 PM on Thursday; the BSE Power index was up 2.3 per cent at 7,043.98, as compared to 0.54 per cent decline in the BSE Sensex at 76,447.51.

Shares of power generation and integrated power utilities companies were in focus, resulting in surge of up to 8 per cent on the BSE in Thursday’s intraday trade on spike in power demand. JSW Energy, Adani Power, Bharat Heavy Electricals Ltd (BHEL), Tata Power Company, and Torrent Power rallied in the range of 5-8 per cent.

 

Stock prices of state-owned companies NTPC and Coal India hit their respective 52-week highs on the BSE in intraday deals. Meanwhile, the market price of NTPC Green Energy soared 15 per cent to ₹99.75 on the back of eightfold jump in average trading volumes. A combined 51.5 million shares changed hands on the NSE and BSE. The stock closed the session with 12.59 per cent gain. 

 

The BSE Power index surged over 3 per cent to 7,070 in intraday deals. The index closed at 7,057, a tad below its 52-week high level of 7,071.43 touched on February 26, 2026. In comparison, the BSE Sensex closed in the red, with a loss of 1.08 per cent, at 76,034. 

Surge in power demand and expectation of harsh summer have led to positive sentiment for the power sector. Evening power demand hit 224.6 gigawatt (Gw) at 7 pm on March 10, rising 7 per cent year-on-year (Y-o-Y) — the highest-ever recorded for March. During the non-solar hours, supply was supported by renewable energy (wind), hydroelectric, gas, nuclear, and coal. While there is compulsory offtake for wind energy, utilisation for the other sources was at 67 per cent, 28 per cent, 87 per cent, and 95 per cent, respectively.

 

Under similar circumstances in 2025, the government had implemented Section 11 of the Electricity Act, 2003 for both imported coal-fired power plants and gas-fired power plants. With deficits anticipated in gas and hydro, analysts at JM Financial Institutional Securities expect higher plant load factors (PLFs) for thermal utilities and the coal value chain.

 

Section 11 is an emergency provision allowing the government to direct power plants to operate at full capacity during "extraordinary circumstances," such as severe supply shortages, high demand, or threats to national security.

 

Accordingly, the brokerage firm’s updated top utility picks for the summer in the order of preference are Adani Power, Tata Power, NTPC, Adani Green, Coal India, and JSW Energy.

 

“Given the current geopolitical developments, we envisage higher probability of a scenario of persistently high liquefied natural gas (LNG) prices, and intense summer could lead to a spike in coal-fired generation to meet evening demand. There is a high probability of a shortfall in hydro generation during the upcoming summer due to a deficit in winter rainfall and snow cover,” analysts said in Utilities & Power Equipment sector update.

 

Shortages in LNG supplies add to supply challenges, impacting gas-fired generation (9 Gw capacity, currently online). Hence, the brokerage firm expects implementation of Section 11 or some other mechanism to enable operationalisation of imported coal-based (ICB) units/plants along with continued higher PLF of existing thermal power plants.

 

Brokerages are positive on NTPC. About 32.9 Gw of its capacity is under construction. This capacity includes 16.5 Gw of coal, 1.9 Gw of hydropower, and 10.3 Gw of renewable energy projects. NTPC plans to add 11.8 Gw and 9.9 Gw of capacity in FY26 and FY27, respectively. A risk-averse regulated business model provides earnings growth visibility/return on equity (RoE) improvement, with strong expansion in both thermal and renewable capacities. Valuations at 1.6 times/1.5 times its FY26/FY27 price-to-book value seem reasonable, given potential long-term growth prospects, and the stock offers a decent dividend yield as well, brokerage firm Mirae Asset Sharekhan said. It has maintained a “Buy” rating on NTPC, with a sum-of-the-parts (SOTP) target price of ₹430. 

 

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