JBM Auto, Olectra Greentech, Ather Energy, Ola Electric shares jump up to 19%; here's why

Shares of electric vehicle (EV) companies, including JBM Auto Ltd, Olectra Greentech Ltd, Ola Electric Mobility Ltd and Ather Energy Ltd, gained sharply on Wednesday.

At close, JBM Auto zoomed 18.89 per cent to Rs 585.30, while Olectra Greentech surged 17.13 per cent to Rs 1,058.15. Ola Electric Mobility and Ather Energy rose 5.34 per cent and 3.58 per cent, respectively.

The rally was accompanied by a spike in trading volumes across counters. JBM Auto saw 35.59 lakh shares changing hands on BSE, significantly higher than its two-week average volume of 25,000 shares.

Olectra Greentech recorded a total trading quantity (TTQ) of 4 lakh shares, compared with a two-week average of 33,000 shares. Ola Electric witnessed 87.02 lakh shares traded, exceeding its two-week average of 52.47 lakh shares. Similarly, Ather Energy saw 4.26 lakh shares change hands, well above its two-week average volume of 79,000 shares.

Ravi Singh, Chief Research Officer at Mastertrust, said, "Electric mobility stocks such as JBM Auto, Olectra Greentech, Ather Energy and Ola Electric Mobility saw noticeable buying interest today, indicating that investor sentiment toward the EV sector is improving again. A big reason for this move is the strong long-term outlook for electric mobility in India. The government continues to encourage EV adoption through policy support and infrastructure development, while rising crude prices and growing environmental awareness are pushing more consumers toward EVs."

He added, "Companies focused on electric buses, like JBM Auto and Olectra Greentech, are benefiting from increasing orders as several state transport bodies move toward electrifying their fleets. Meanwhile, two-wheeler EV companies such as Ather Energy and Ola Electric are expanding their product offerings and production capacity to tap into rising demand in urban markets. Another factor supporting the rally is valuation comfort. Many EV stocks had corrected significantly earlier, so the recent rise also reflects investors returning to the sector with a longer-term growth perspective."

Kranthi Bathini, Equity Strategist at WealthMills Securities, noted, "Amid rising crude oil prices, investor sentiment has been shifted towards the electric vehicles firms, anticipating a faster adoption to the EV theme."