NHPC spikes 15%, BSE PSU index records new all-time high surging over 3.5%

The unwavering surge in PSU stocks continues without any indication of slowing down, as they further extended their winning streak today, reaching new peaks. The optimism is fueled by expectations of the Government of India (GoI) announcing fresh investments for the development of railway infrastructure in the upcoming 2024 budget and the increasing power demand in the country, propelling stocks in these sectors to record highs in today's trade.

Apart from these sectors, all major PSU stocks jumped in today's trade. As a result, the BSE PSU index, reflecting public sector enterprise performance, has surged by 3.73% to record a new all-time high of 16,811 points.

Shares of railway PSUs, including Rail Vikas Nigam and Indian Railway Finance Corporation (IRFC), locked in 10% upper circuit limit in today's trade, while another railway PSU, Ircon International, soared by an additional 15%, touching a new all-time high of ₹261.35 apiece.

Railway PSUs have been on an upward trajectory since the government announced a substantial capital outlay of ₹2.40 lakh crore for the Indian Railways in the Union Budget 2023-2024. This marked the highest-ever outlay, approximately nine times the investment made in 2013–14.

Amid this positive momentum, analysts anticipate further investments, given the government's strong commitment to the transformation of the Indian Railways.

Also Read: Rail stocks RVNL, IRFC, IRCON jump up to 15% to new highs; soar up to 75% just in Jan ahead of Budget

Meanwhile, the robust performance of IRFC shares propelled the company's market capitalisation to surpass that of M&M, Tata Steel, and Jio Financial Services. In the previous trading session, the company achieved a market capitalisation exceeding ₹2 lakh crore, securing its position as the ninth PSU firm to attain this milestone.

In today's session, the company's market capitalization reached ₹2.3 lakh crore as its shares marked another all-time high of ₹176.2 apiece.

Power Stocks 

Power stocks are also seeing a strong spike in today's trade amid growing power demand in the country. 

The peak power demand in India is likely to cross 400 GW by 2030, and more generation capacity is being set up to meet the rising demand, said Union Power Minister R K Singh.

Also Read: How does Indian market stack up against Asian peers when it comes to recent correction?

"By 2030, peak electricity demand is likely to cross 400 GW, indicating the fast growth of the economy. The demand grew by 9% last year and is growing by 10% this year. On a daily basis, the demand is 8–10 GW more than the same day the previous year. There is no other market as big and growing as fast as us," the minister was quoted as saying in a release by the Power Ministry on January 19.

NHPC shares reached a new all-time high of ₹85 apiece in today's trade, marking a gain of 15.56%. Notably, this price surpassed the government offer-for-sale price of ₹66 apiece. On the other hand, shares of SJVN, REC, Power Finance Corporation, Power Grid Corporation of India, and NTPC are trading with gains between 2 and 8% as of noon.

Additionally, insurance stocks, including LIC, The New India Assurance Company, and General Insurance Corporation of India, are trading with gains exceeding 5%. Defence stocks, such as Mazagon Dock Shipbuilders, Cochin Shipyard, Bharat Dynamics, and Bharat Electronics, are also witnessing an upswing in today's trade.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.