Stocks of Indian power producers rally as electricity demand rises

Indian power producers NTPC Ltd, Tata Power and Torrent Power, and Coal India Ltd, the country’s largest producer of the fuel, rose on Wednesday, spurred by rising demand.

State-run NTPC, India’s biggest power producer, and miner Coal india, which produces over 80% of India’s coal, recorded their biggest intraday rise in more than seven years. Both stocks have pared gains from the day’s highs.

Tata Power rose by as much as 9.6% to an nearly 14-year high, while Torrent Power, another private power producer, rose to a record.

India’s power demand has increased after the easing of coronavirus-related curbs across the country, causing coal shortages at utilities.