Thursday’s trading session in Mumbai showcased energy stocks’ remarkable defiance, surging as much as 15% while benchmarks tumbled. Blistering temperatures and fears of oil disruptions from Middle East tensions are catapulting power sector equities to the forefront.
At 1:30 PM, Nifty Energy Index was the clear leader, advancing 1.94%. NTPC Green Energy exploded 14.90%, with Adani Total Gas (9.99%), NLC India (8.07%), JSW Energy (7.56%), Tata Power (5.43%), Jaiprakash Power (5.42%), Adani Power (5.26%), BHEL (5.14%), Torrent Power (4.84%), Coal India (4.54%), and NTPC (1.91%) all posting solid gains.
Fundamental drivers are at play, says Sunny Agarwal of SBI Securities. Intense heatwaves nationwide, alongside crude oil and gas supply hitches, signal a sharp rise in energy grid requirements. ‘The power sector is reaping the rewards,’ he stated.
Compounding this, Middle East volatility risks oil and LPG shortages, steering consumers toward power-hungry devices such as electric cookers. This shift is intensifying electricity demand, directly benefiting energy firms.
Broader indices lagged: Sensex down 246 points (0.32%) at 76,634, Nifty off 52 points (0.22%) at 23,813. Midcap 100 climbed 0.30% to 56,628, smallcap 100 slipped slightly to 16,408.
Investors are betting big on energy’s resilience. As seasonal and geopolitical factors align, the sector’s outperformance may continue, marking it as a key watch area in volatile times.