NTPC, JSW Energy rise up to 4% as Jefferies expects power stocks to rebound in 2026

Jefferies on power stocks

• Jefferies selects JSW Energy, NTPC as top power stocks amid demand recovery.
• Power demand CAGR seen at 5-6 percent, driven by data centres and EV sales
• JSW Energy and NTPC shares rose over 7 percent in the past five days

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The shares of NTPC and JSW Energy jumped in trade on January 2 after Jefferies listed them as its top picks in the power sector, while outlining expectations for the rebound in the sector.

The international brokerage in its latest note said that power producer stocks are expected to be bouncing back as demand recovers after unseasonal rains dampened need for consumer durables last year.

The international brokerage said that JSW Energy and NTPC are its top picks in the sector as they invest in new projects and execute power purchase contracts.

Medium-term power demand CAGR is expected to return to 5-6 percent levels on the back of data centre expansion and rising EV sales, Jefferies said. It added that renewable energy purchase agreements and thermal power capacity additions will likely gather pace in 2026.

JSW Energy share price:

JSW Energy shares rose 2.5 percent to Rs 514.55 apiece on January 2, extending gains for the third consecutive session. The stock has risen more than 7 percent in the past five days, but fell over 1 percent in the past six months.

The stock fell over 20 percent in the past one year, and has a P/E ratio of around 39. The company’s market capitalization stands at Rs 89,477 crore.

NTPC share price:

The shares of state-run NTPC jumped nearly 4 percent to Rs 349.3 apiece, the highest level seen by the stock since October 29. The shares have risen over 7 percent in the past five days, and over 4.5 percent in the past six months.

The stock's P/E ratio currently stands at 14.43, and the company has a market capitalisation of Rs 3,38,317 crore.

Here's what JM Financial said:

JM Financial in a note earlier last month said that electricity demand is becoming very sensitive to changes in weather. It explained that power demand remained almost flat between April and November last year due to excessive rains.

“The APEC Climate Center in its monthly outlook sees an "enhanced probability" of above-normal temperatures in India during Apr-Jun’26. Skymet said there is currently more than a 60% probability of El Nino and the 2026 monsoon could turn out to be subpar. Going forward, we remain watchful on subsequent estimates on ENSO probabilities that can have meaningful impact of power demand,” it added.

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