SJVN, NHPC, Power Grid zoom to new highs on budgetary push

The allocation to Power PSUs was increased by at least 17 percent to Rs 93,200 crore in the interim budget, compared to the revised estimates of Rs 79,616 crore last year.

Shares of state-run power companies SJVN, NHPC and Power Grid surged up to 14 percent to new highs on February 2, a day after Finance Minister Nirmala Sitharaman announced an increase in budgetary allocation to the sector in the interim budget.

The allocation was 17 percent higher at Rs 93,200 crore from the revised estimates of Rs 79,616 crore last year.

Investors reacted positively to NHPC allocation going up from Rs 11,761 crore to Rs 9,006 crore. The stock jumped 12 percent to hit a record high of Rs 103 on the NSE, its best single-day gain in around two years.

In the last year, the multibagger stock has risen 137 percent against a 24 percent gain for the Nifty.

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The stock has risen 50 percent from its Offer For Sale (OFS) price of Rs 66. The government sold around 4.5 percent stake in the power firm in January, reducing its stake to 71 percent.

The Interim Budget hiked the allocation to Power Grid to Rs 12,250 crore from Rs 8,800 crore. The stock jumped over 5 percent to a new high of Rs 281.40 on the NSE.

In the last year, the stock has rallied 75 percent and nearly 50 percent in just last month.

SJVN shares zoomed 14 percent, extending the previous session's gains. The Budget 2024 set aside Rs 12,000 crore for SJVN against Rs 10,000 crore in the previous year.

The stock has more than doubled from its OFS price of Rs 69. The OFS was launched in September 2023, bringing down the government’s stake to 55 percent.

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In six months, SJVN has gained more than 155 percent.

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