Tata Power shares in focus on $4.25-bn MoU with ADB 

Shares of Tata Power are in news today after the Tata Group firm said it has inked a Memorandum of Understanding (MoU) with Asian Development Bank. The MoU coincides with the ongoing Climate Conference (COP29) at Baku, Azerbaijan, to evaluate financing for its several strategic projects aimed at enhancing India’s power infrastructure and promoting renewable and clean energy.

Tata Power shares ended 0.09% higher at Rs 408.45 on BSE in the previous session. Market cap of the firm stood at Rs 1.30 lakh crore. A total of 10.01 lakh shares of the firm changed hands amounting to a turnover of Rs 40.69  crore. Tata Power stock slipped to a 52-week low of Rs 256.95 on November 24, 2023 and rose to record high of Rs 494.85 on September 27, 2024.

The power sector stock has gained 24% in 2024 and risen 56% in a year.

Amid the rally, the stock has also been highly volatile during the same period. Its one year beta stands at 1.6.

In terms of technicals, the relative strength index (RSI) of Tata Power stock stands at 37.8, signaling the stock is trading neither in the overbought nor in the oversold zone. Tata Power shares are trading lower than the 5 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.

"The MoU outlines the evaluation of financing for several key ongoing projects such as the 966 MW Solar Wind Hybrid project and Pumped Hydro Storage Project and other projects in the pipeline around energy transition, decarbonization, and battery storage as well as ongoing financing for capex towards strengthening the distribution networks managed by Tata Power. The total estimated project cost is approximately US $4.25 billion," said Tata Power.