Adani Power's Shares Touch All-Time High On Prospects Of Better Earnings

Adani Power's shares touched record high on Monday
Adani Power's shares touched record high on Monday

Adani Power's shares on Monday touched a record high of Rs 220.8 at the bourses after opening at Rs 207 at the National Stock Exchange (NSE), driven by expectations that improved demand will propel earnings in the sector.

The company's shares hit a 52-week high of Rs 220.8 per share and at 2.43 pm were trading at Rs 215.80 per share at the NSE.

In March 2022, the country had seen its worst electricity shortage since October 2021, when as many as five states including Delhi were facing acute shortage of coal and were staring at prospects of black-outs.

Meanwhile the sudden surge in power demand in March 2022 had forced India to cut coal supplies to non-power sector and hold fuel auction plans for utilities due to slump in inventories.

Last week on April 1, shares of power generation and related companies were in focus as the S&P Bombay Stock Exchange Power index had hit an over 14-year high in the intra-day trade, on expectations that growing demand will spur earnings.

Adani Power, Bharat Heavy Electricals (BHEL) and NTPC from the index had rallied between 5 per cent to 10 per cent, while Power Grid Corporation, Tata Power, Torrent Power and JSW Energy had advanced in the range of 2 per cent to 4 per cent on the Bombay Stock  Exchange.