Amid a weak market last week, power generation and distribution stocks gained as much as 16% in the last five trading sessions. Counters across the utilities and power space saw positive momentum making the BSE Power and BSE Utilities two of the top sectoral BSE indices last week.

This healthy momentum could be attributed to mainly three triggers: rising demand, fillip to power storage and analysts turning constructive on stocks in the sector.

Power Stocks Surge

The BSE Utilities and BSE Power indices gained 4.8% and 4.6%, respectively in the last five trading sessions. Meanwhile, power stocks rose in the range of 7.5% to 17%, with NLC India Ltd., JSW Energy Ltd., and CESC Ltd. leading the roost.

The following factors could be potential triggers for the latest uptick in power and energy counters:

Strong Power Consumption Trend

As per JM Financial, India’s power consumption trend has been improving. In January 2025, India’s energy demand rose 2% on a year on year, but the first two weeks of February saw power demand rise 6% on an annual basis. The peak power demand also rose 6% in both the previously mentioned time periods.

As per the brokerage, this data suggests a likely rebound in power demand in coming months.

Boost For Energy Storage

On Feb. 19, the Ministry of Power also mandated all renewable energy capacities to include 2-hour storage systems. This mandate stands as a boost to companies developing battery energy storage and pumped storage systems.

The stocks in focus on the back of this news are SJVN Ltd., NHPC Ltd., Adani Green Energy Ltd., JSW Energy, Tata Power.

Consensus Ratings Boosted

Furthermore, the past month has noted many power stocks getting a upgrade in their ratings from analysts:

  • Feb 21: ‘Buy’ initiated on Adani Energy Solutions, JSW Energy, Suzlon Energy by different brokerages.

  • Feb 20: NHPC upgraded to ‘Buy’ by CLSA.

  • Feb 19: Tata Power upgraded to ‘Hold’ by HSBC.

  • Feb 5: Torrent Power upgraded to ‘Reduce’ by Elara Securities.

  • Jan 29: JSW Energy upgraded to to ‘Buy’ by Investec and Elara.

  • Jan 28: Suzlon Energy upgraded to ‘Buy’ by Nuvama Research.

. Read more on Markets by NDTV Profit.Stocks like NLC India, JSW Energy, CESC, and NHPC have gained as much as 17% in the last five trading sessions.  Read MoreMarkets, Business, Notifications 

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