Why did Adani Power become so popular?

TeknikalRaman

Finance & Business

POSTED BY: Ranjeet Kumar PUBLISHED: Jun 22, 22

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Given the company's interest among investors, Adani Power's shares was included in the MSCI index in May of this year.

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Though the stock has increased by around 12% in the last month, it has dropped by over 8% in the last week.

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According to media sources, Adani Power is down mostly owing to profit booking after the stock had risen significantly.

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Additionally, the company's values are high. Given Adani Power's high value, few analysts or brokerage companies could be observed covering the company.

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In addition to being included in the MSCI Index, power equities in general, notably Adani Power and Tata Power, have been on the upswing in recent months.

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This is mostly due to an increase in electricity usage as a result of high heat waves in various parts of the country.

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And, as a result of the lifting of Covid-related limitations in several states, businesses are working at full capacity. This is good news for electricity firms, since they will be able to meet the rising demand.

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The BSE Power Index has gained approximately 20% since January this year (about 45 percent in the previous year) and has also achieved an all-time high this year.