Adani Power electrified

Adani Power is the top gainer on the BSE with the stock currently being up over 9.5% at Rs.48. Its upper circuit filter is at Rs.50.35. Volumes are huge at over 7.7 lakh shares being traded in the morning.

The stock is up on expectations that it will soon be allowed to hike power tariffs. Power companies have been appealing to the Ministry for a hike in rates as it has been subsidized to an extent where they are finding it difficult to make any profit, given the hike in input cost of coal and gas. Also with domestic production of gas and coal not going up, international prices for imports have more than trebled over the past few years. The Power Minister, Jyotiraditya Scindia said that he wanted subsidies to be phased out and like the regular hikes in fuel prices, wanted power tariffs to be hiked on a regular basis and not once in a blue moon.