NTPC Green, KPI Green, NLC India, JSW Energy, NTPC, Adani Green shares jump up to 13%; here's why

Shares of power generation companies moved up sharply on Thursday, with several renewable energy and power stocks witnessing strong buying interest.

Counters such as KPI Green Energy Ltd, NTPC Ltd, its wholly-owned subsidiary NTPC Green Energy Ltd, NLC India Ltd, JSW Energy Ltd, KP Energy Ltd and Adani Green Energy Ltd settled in the green during the session.

At the closing bell, NTPC Green Energy led the gains, surging 12.58 per cent to Rs 97.61 level. KPI Green Energy jumped 8.58 per cent, while NTPC climbed 2.79 per cent. KP Energy, NLC India, JSW Energy advanced 5.05 per cent, 6.87 per cent and 6.29 per cent, respectively. Adani Green Energy shares rose 1.90 per cent.

Other stocks such as ACME Solar Holdings Ltd, Gujarat Industries Power Company Ltd, Clean Max Enviro Energy Solutions Ltd, NHPC Ltd, SJVN Ltd, GMR Power and Urban Infra Ltd, Inox Green Energy Services Ltd also ended higher.

Kranthi Bathini, Equity Strategist at WealthMills Securities, noted that with the looming LPG supply crisis amid summer, a potential shift could happen from gas companies to power. He added that heightened activity may be seen in power companies as well as solar-related firms, which is why some momentum is being witnessed in these stocks.

Ravi Singh, Chief Research Officer at Mastertrust, said power generation stocks are attracting buying interest as the outlook for the sector continues to improve, adding that electricity demand in India has been steadily rising.

"When power consumption grows, generation companies typically benefit through higher utilisation of their capacity. This expectation of stronger demand in the coming months is one reason investors are showing interest in the sector. Another important driver is the increasing focus on renewable energy. Companies actively expanding in solar and wind projects are gaining attention, as India is pushing aggressively towards clean energy capacity expansion. At the same time, power utilities are often seen as relatively defensive businesses. In uncertain market conditions, investors tend to prefer sectors that offer steady earnings and predictable cash flows, which is why utilities are seeing renewed interest," he also stated.

Meanwhile, Indian benchmark indices extended their decline on Thursday, as a fresh spike in crude oil prices amid renewed escalation in the West Asia conflict dampened investor sentiment. Weakness was also visible across the broader market.