Power, Utilities Stocks Gain As Electricity Demand Improves
Shares of power and utilities companies rose on a recovery in demand for electricity as business activities resume.
The 14-stock S&P BSE India Power Index gained more than 3.5% in trade on Wednesday. Tata Power Co. was the biggest gainer among peers, while Adani Transmission Ltd. lost the most.
The S&P BSE Utilities index rose over 3.8%, led by PTC India Ltd., Tata Power, Indian Energy Exchange Ltd. and NTPC Ltd. Only four constituents in the 27-stock gauge declined.
That comes as power use, according to data from Central Electricity Authority, Government of India, rose 10% in July and 18% in August. Coal stockpiles have declined 73% over the past year, leaving nearly 121 GW of power-generating capacity with stockpiles of week, as on Sept. 21. India’s electricity demand rose to its highest in two years in July to 124.8 tera watt hour and nearly 130 TwH in August.