Why Power Stocks Are Rising Even As Markets Fall

Power stocks jumped sharply on Tuesday, rising as much as 9% in intraday trade, even as benchmark indices slipped amid global tensions. Post 3:30 PM, the Nifty Energy index stayed in the green while the Nifty 50 fell close to 0.80%. The divergence stood out, with investors shifting focus to electricity-linked companies ahead of the summer demand cycle.

On 13 April 2026, at the close of the day, NTPC Green Energy was up 7.32% to ₹104.28. Reliance Power and Thermax followed with gains of 3.73% and 5.96%, respectively. Stocks such as JSW Energy, Tata Power, and NLC India also edged higher, mostly in the 1.42% to 5.25% range.

Meanwhile, Adani Power Ltd shares reached an all-time high of ₹184.40 around midday.

What’s Driving The Rally In Power Stocks?

The timing itself gives us an idea about why such rallies happen. As the weather starts heating, electricity usage goes up, particularly during evening hours. Market players are preparing themselves for a peak season of demand in the next few weeks.

Recent data backs this view. Power demand in India reached 425 billing units in Q4FY26, showing a 1.9% rise from a year ago and an 8% increase over the previous quarter. Peak demand had already touched 245 GW in January, and projections suggest this could move higher as summer sets in.

Fuel availability has also helped calm nerves. Officials have indicated that coal supplies remain sufficient and prices have not seen unusual spikes. This has eased concerns that power generation could be hit just when demand picks up.

In addition, global signals have led to a redirection of investments from overseas markets to domestic sectors. The geopolitical risks that have become a major concern for West Asian oil and gas supply have created conditions where local sectors like electricity are safer options, comparatively speaking.

Policy Support Adds To Momentum

Government action has reinforced the near-term outlook. Authorities have decided to delay maintenance shutdowns at thermal plants and push additional capacity into the system.

The plan is expected to bring around 10,000 MW of extra supply during peak demand months. This should more than cover the estimated 8,000 MW shortfall linked to LNG-related disruptions.

The government has also assured that diversification is on track as far as the power sector is concerned. The total installed capacity of India exceeds 531 GW, of which non-fossil fuels account for an increasing part apart from coal and hydro.

Also Read - Adani Power Outperforms Market, Reaches New 52-Week High

Can The Momentum Continue?

For now, the sector has both demand visibility and policy backing. That combination is drawing investor interest despite weakness in the broader market.

As far as long-term expectations go, the sector remains highly promising. The installed capacity can cross around 874 GW by 2031-32, with the proportion of clean energy rising. The capital expenditure in transmission projects is expected to go up to ₹4.8 trillion over the coming years.

Nonetheless, the current rally is contingent upon the summer demand and the reliability of supply. Should both be in place, the rally will remain intact. Otherwise, investors might quickly start shifting focus elsewhere.

Sources:

Mint

Business Today