NHPC shares recoup losses as Sensex, Nifty recover; what’s next?

Shares of hydropower producer NHPC Ltd recouped all of their Wednesday’s losses amid a partial recovery in the benchmark indices today. NHPC stock zoomed 9.51% intraday to Rs 85.64 in the current session against the previous close of Rs 78.20 on BSE. Market cap of the firm climbed to Rs 85,744 crore. On Wednesday, the stock ended 9.74% lower at Rs 78.20.

The power sector stock has surged 124% from its 52-week low of Rs 38.70 touched on March 28, 2023.

In comparison, the BSE power index gained nearly 79% during the period. NHPC shares are on a bull run in the medium term too, climbing 112% in a year.

NHPC stock also logged a high turnover of Rs 173.40 crore on Thursday with 210.43 lakh shares changing hands on BSE. Market cap of the firm climbed to Rs 85,071 crore. The stock touched its record high of Rs 115.85 on February 5 this year.

Riyank Arora Technical Analyst at Mehta Equities said, “The stock has tested a major support mark of Rs 77 on its daily charts. With the overall trend being positive and the stock continuing to move in an uptrend, it looks poised for a good move towards Rs 90 and Rs 95, gradually over the period of time. A strict stop loss should be kept at Rs 72 for all the active long positions.”

In terms of technicals, the relative strength index (RSI) of the stock stands at 34.9, signaling it's trading neither in the overbought nor in the oversold zone. It has a one-year beta of 0.9, signaling low volatility during the period.

NHPC shares are trading lower than the 100 day, 150 day, 200 day but higher than the 5 day, 10 day, 20 day, 30 day, 50 day moving averages.

NHPC posted a 26.77 per cent fall in its consolidated net profit to Rs 491.90 crore as against Rs 671.67 crore in the corresponding period of last fiscal. Revenue from operations slipped 20.42 per cent in the December 2023 quarter compared to Rs 2,055.50 crore in the year-ago period. NHPC also announced an interim dividend of Rs 1.4 a share for the financial year 2023-24.

Meanwhile, the equity market was trading higher on Thursday. Sensex gained 335 points to 73,097 and Nifty added 132 pts to 22,130. On Wednesday, Sensex ended 906 pts lower at 72,761 and Nifty lost 338 points to close at 21997.

NHPC Limited is engaged in the generation and sale of bulk power to various power utilities. The company’s other business activities include project management / construction contracts/ consultancy assignment services and trading of power. The company’s power stations include Salal, Dulhasti, Kishanganga, Nimoo Bazgo, Chutak, Baira Siul, Tanakpur, Dhauliganga, Rangit, Loktak, Indira Saga, Chamera - I, Uri - I, Chamera - II and Omkareshwa.