BSE Power Index surges 10-year high! Adani Power share price jumps around 45% in 3 sessions

Touching a new high for the third straight session, the shares of Adani Power jumped around 45 per cent in the last three days on the BSE. Alone on Tuesday, the stock touched a new 52-weel high, surging by over 19 per cent to Rs 152.30 per share on BSE intraday on Tuesday. 

Besides, the other power generation and distribution companies shares such as JSW Energy, NTPC, Reliance Infrastructure, Power Grid Corporation, Tata Power, and Torrent Power too have surged on the back of heavy volumes, taking the BSE Power Index to 10-year high levels.  

In this regard, the S&P BSE Power index hit a 10-year high of 3,008, a level was last seen in January 2011, in intraday trade today. Besides Adani Powere, Tata Power and Torrent Power gaining over 4 per cent each on the BSE intraday, has helped the Index to touch a new decade high. 

The index surged 6 per cent in the last one week as compared to less than 1 per cent gain in the benchmark index after the Ministry of Power (MoP) released a discussion paper on the ‘One Nation, One Grid, One Frequency, One Price’ framework.  

The government has recently released a discussion paper on the implementation of Market-Based Economic Dispatch (MBED) which argues for redesigning of day-ahead scheduling of electricity markets in the country on a market-based / integrated approach in order to realise the ‘One Nation, One Grid, One Frequency, One Price’ framework.  

The industrial and commercial power demand in India has jumped by 12.6 per cent in the first week of June to 25.36 billion units (BU). However, this was down 3.35 per cent on a monthly basis from 26.24 BU, consumed in the first week of May 2021, the Power Ministry data portrays. 

Power generation during May 2021, which soared eight per cent year-on-year amid a low base from lockdowns in May 2020, was 4 per cent lower on a 2-year CAGR basis. The fall continued in June 2021 as well where data for the first week of the month shows 2-year CAGR of negative 5 per cent.