Power stocks rally; Tata Power, CESC, Adani Power gain up to 16%
Shares of electric utility companies such as Tata Power, Reliance Infrastructure, Adani Power, CESC and JSW Energy have rallied by up to 16% on the BSE in intra-day trade on hopes of the Gujarat government’s panel may bring Rs 1.29 trillion relief to state’s three stranded power projects.
Tata Power soared 16% to Rs 72.15 on the BSE in intra-day trade on the back of an over 10-fold jump in trading volumes. A combined 25.1 million equity shares changed hands on the counter on the NSE and BSE till 01:29 PM.
Adani Power up 14% to Rs 34.10, surging 42% in past three trading days. In comparison, the S&P BSE Sensex was up 2.3% or 787 points at 34,788 on the BSE.
“The recommendations of a high-powered committee on stranded power projects set up by the Gujarat government can bring a combined relief of Rs 1.29 billion for Tata, Adani and Essar's power plants in the state over the next 30 years,” the PTI report suggested quoting sources.
A three-member committee comprising former Supreme Court judge Justice R K Agrawal, former RBI Deputy Governor S S Mundra and former Central Electricity Regulatory Commission (CERC) chairperson Pramod Deo was set up by the Gujarat government on July 3, 2018, to find solutions for the three thermal power plants located in the state that were in financial distress, added report. CLICK HERE TO READ FULL REPORT