Power stocks have been on an upward trajectory in the recent past, even as the broader stock market sentiment has been fragile due to the US-Iran conflict, a sharp spike in crude oil prices, and growing concerns that an energy shock can derail the growth momentum of the Indian economy and delay earnings recovery.
On Monday, 20 April, several power stocks, including Adani Power, NTPC, PFC, BHEL, Tata Power, Hitachi Energy India, Siemens, Thermax, and Torrent Power, hit their 52-week highs in intraday trade on the BSE.
Since the US-Iran war began on 28 February, power stocks such as Adani Power and Waaree Renewable Technologies have surged 30-40%.
Stocks such as JP Power, Adani Energy, NTPC Green, GRE Renew Enertech, Reliance Power, Adani Green, RattanIndia Power, Globus Power, KPI Green Energy, and NLC India have jumped more than 15% each in the same period.
Why are power stocks rising?
A key driver behind the rise in power stocks is the prospects of strong demand amid the summer season.
According to brokerage firm Axis Securities, India’s electricity demand has reached 425 BU in Q4FY26, up 1.9% YoY and 8% QoQ as the transition to pre-summer heat drove peak demand to 245 GW in January.
Monsoon is expected to remain weak in 2026, which means electricity demand will remain high. Weather forecasters Skymet and the India Meteorological Department (IMD) believe India may see one of its driest monsoons in years in 2026 because of the El Niño effect.
Skymet has predicted rainfall at 94% of the long-period average, while the IMD has pegged it at 92% of the 50-year average.
“Because of heavy summer and heat waves, power demand is going to go up, which has made the outlook for power stocks attractive,” SEBI-registered market expert Avinash Gorakshakar noted.
Ajit Mishra, SVP of Research at Religare Broking, also believes power stocks are largely driven by a combination of strong seasonal demand and improving structural outlook.
“With rising temperatures across the country, electricity consumption is witnessing a sharp uptick, prompting expectations of robust near-term earnings. At the same time, improved coal availability and better plant load factors are enhancing margin visibility for generators,” Mishra said.
Additionally, Mishra pointed out that the sector continues to benefit from a multi-year capex cycle focused on generation, transmission, and renewable energy, which is also supporting financing entities like PFC.
“The defensive nature of the power space amid broader market volatility has further attracted investor interest, resulting in sustained momentum and fresh 52-week highs across key stocks,” said Mishra.
Another key factor behind the rise in power stocks is that investors are looking at sectors and stocks less affected by the geopolitical conflicts and with good earnings visibility.
“Investors want to play it safe now. They are focusing on companies where the earnings visibility is very strong. Elevated oil price or the geopolitical factors will not have any major impact on the power sector,” Gorakshakar said.
“The fourth-quarter (Q4FY26) earnings of several companies may be good. The government is also perhaps looking to increase investment in this sector. I think power transmission, power distribution, power equipment, all these things may do well going ahead, apart from power generation,” said Gorakshakar.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
