NTPC and JSW Energy saw their shares jump on Jan 2 after the global brokerage Jefferies named them its top picks in the power sector.
Why Jefferies Chose These Two Companies
Jefferies highlighted that both firms are adding new projects and signing power‑purchase agreements, which should help them grow as electricity demand picks up again.
Recent Stock Performance
- JSW Energy: Up 2.5% to ₹514.55, gaining over 7% in the last five days. The stock has a P/E of about 39 and a market cap of roughly ₹89,500 cr.
- NTPC: Rose nearly 4% to ₹349.30, also up more than 7% in five days. It trades at a P/E of 14.4 and is valued at around ₹3,38,300 cr.
What’s Driving Power Demand?
Jefferies expects medium‑term power demand to grow at a 5‑6% annual rate, helped by two big trends:
- Expansion of data centres that need lots of electricity.
- Increasing sales of electric vehicles, which will need more charging infrastructure.
Renewable‑energy contracts and new thermal‑power capacity are also likely to pick up from 2026 onward.
Weather Could Still Play a Role
Recent analysis shows that unusually heavy rains last year kept electricity use flat for many months. Forecasts suggest a higher chance of hotter temperatures and a weaker monsoon in 2026, which could push power demand higher.
Takeaway for Retail Investors
Both NTPC and JSW Energy are positioned to benefit from the expected rise in electricity consumption. Their recent price gains reflect optimism, but investors should keep an eye on weather patterns and policy changes that could affect the sector.
Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.