Power Grid shares hit record high on plan for Rs 40,000-cr undersea link with Middle East

Shares of Power Grid  Corp rose over 4% to hit their record high in early deals in Tuesday after the power transmission firm said it was planning an undersea interconnection worth up to Rs 40,000 cr with countries in the Middle East. Power Grid shares climbed 4.24% to record high of Rs 356.95 against the previous close of Rs 342.40 on BSE.

Market cap of the firm climbed to Rs 3.29 lakh crore.

A total of 5.17 lakh shares of Power Grid changed hands amounting to a turnover of Rs 18.21 crore. Power Grid shares have a one-year beta of 1.2, indicating very high volatility during the period.      

The stock fell to a 52-week low of Rs 179.81 on August 9, 2023. 

In terms of technicals, the relative strength index (RSI) of Power Grid stands at 57.8, signaling it's trading neither in the overbought nor in the oversold zone. Power Grid shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Chairman and managing director R K Tyagi said on the interconnected projects front, it is looking at companies beyond the immediate neighbourhood and will be looking at countries in the Middle East.

He specified that discussions are ongoing with Oman, Saudi Arabia and the UAE for the interconnection.

The company has a 'pulling station' near the Arabian Sea in Gujarat's Bhuj, which will be connected with a similar station on the shores of the Middle East country as well, he explained.

A high voltage direct current cable will go from the seabed with a capacity of up to 2,500 MW, he said, adding that it will cost Rs 35,000-40,000 cr and will take up to six years to complete.