Power stocks build momentum amid India’s energy crisis

India’s power consumption spiked to an all-time high of 132.98 billion units in April amid the rise in mercury level in the country.

According to India’s power ministry, the country’s electricity demand is expected to rise to 220 gigawatts in the next two months as meteorological department forecasts above normal maximum temperatures in west-central, north-west, north and north-eastern regions.

It’s not surprising then, that power-related stocks have been the favourable destinations with investors this year.

The stock prices of power sector companies, including power generation and power distribution, have done materially better than benchmark indices.