Stock market today: Servotech Power Systems Ltd shares witnessed strong buying in early morning deals on the post-budget session. Servotech share price today opened upside at ₹99.75 apiece on NSE and went on to touch an intraday high of ₹100 per share, which is a new 52-week high for the energy stock. While climbing to this new 52-week high, Servotech share price surged to the tune of 5 percent during Friday deals.
According to stock market experts, Servotch shares are rising due to the fresh budget proposals under the Electric Vehicle (EV) Ecosystem. In Budget 2024, FM Nirmala Sitharaman declared to further expand and strengthen the e-vehicle ecosystem by supporting manufacturing and charging infrastructure. As Servotech Power Systems Ltd is one of the limited listed companies that work on EV theme, the market is buying this energy stock expecting long-term benefits for the company.
Triggers for Servotech shares
On why Servotech shares are rising after Budget 2024, Divam Sharma, Founder and Fund Manager at Green Portfolio said, "Green Energy as expected has some developments. Wind Energy in particular is very interesting for us as we invest in a company that works in the wind industry. The share price of that company also went up as the announcement was made to promote offshore wind energy harnessing by gap funding."
Servotech share price target
On the outlook for Servotech shares, Shiju Koothupalakkal, Technical Analyst at Prabhudas Lilladher said, “Servotech shares have a strong base at ₹88 levels and the energy stock is facing a hurdle at ₹100. On breaching this hurdle decisively, Servotech shares may go up to ₹112 apiece level. So, Servotech shareholders are advised to hold the scrip and maintain a trailing stop loss at ₹88.”
Budget 2024 trigger for Servotech share
"Our Government will expand and strengthen the e-vehicle ecosystem by supporting manufacturing and charging infrastructure. Greater adoption of e-buses for public transport networks will be encouraged through payment security mechanism," Nirmala Sitharaman said in her Budget 2024 speech on Thursday.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
