The first & foremost reason behind the aggressive demand for Adani Power Shares is the increasing worth of the power sector in the upcoming decades.
Many other companies in the power sector are also doing well.
If we look at some other firms in the power sector, we are going to have similar results each and every time.
Related Post: Adani Power stocks in the spotlight
Here are previous the weekly results of some companies in the power sector:
Adani Power Ltd (up 39.45%)
Adani Green Energy Ltd (up 1.24%)
Siemens Ltd (up 4.31%)
Torrent Power Ltd (up 2.11%)
NTPC Ltd (up 5.39%)
JSW Energy Ltd (up 8.43%)
Power Grid Corporation of India Ltd (up 7.54%)
Tata Power Company Ltd (up 1.34%)
NHPC Ltd (up 2.38%)
These past weekly results give us an answer to our question: Why is Adani Power Share Continuously Gaining and Making New Highs?
The second reason is that Adani Power somehow managed to get a favorable ruling in a lawsuit against Rajasthan Discoms, and is now set to get Rs 4200Cr as a compensatory tariff.
According to the latest report, On Friday the Supreme Court ruled in favor of billionaire Gautam Adani’s power unit, saying state-run distribution companies in Rajasthan state have to pay Adani Power Ltd. Rs 3,048 crore ($405 million) and additional interest to compensate for higher fuel costs.
Shares of Adani Power are in the spotlight after the Supreme Court in a ruling ordered the Rajasthan-based three Discoms to pay up the balance dues, arising from a legacy dispute over compensatory tariffs.
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The Supreme Court has now directed Rajasthan Discoms to pay the compensatory tariff to Adani Power within four weeks, which amounts to Rs 4,200 cr in total.
Some payments had been made, but the entire debt owed to Adani Power had not been cleared.
As a result of elevated commodity prices and the resulting downgrade of future earnings growth, the domestic stock market last week remained highly volatile.
Prices of products have been increasing steadily and are expected to increase further in the future affecting both demand and margins, experts said. However, buying was seen across all sectors.
The third and last reason is that the overall market is trending in an upward direction and it is ready to achieve a new all-time high.
In this current situation, there is only one thing that can break this upward trend in the market, any big news coming out of the Russia-Ukraine conflict.
Otherwise, the upcoming Indian market is unstoppable and is ready to achieve its new all-time high, which can be beyond anyone’s expectations.
Conclusion:
- The first & foremost reason behind the aggressive demand for Adani Power Shares is the increasing worth of the power sector in the upcoming decades.
- The second reason is that Adani Power somehow managed to get a favorable ruling in a lawsuit against Rajasthan Discoms, and is now set to get Rs 4200Cr as a compensatory tariff.
- The third and last reason is that the overall market is trending in an upward direction and it is ready to achieve a new all-time high.
If you’re going for an investment in Adani Power shares then you must do your own research it can give you a good amount of loss in a short period because of share price correction.
But if you are looking for long-term investment and ready to take losses in the short duration then you’re good to go.
The other thing is you can wait & watch for Adani Power’s share price correction and then invest.
For all this, I have a different view, if a person really wants to invest in Adani Power stocks then he should avoid buying in bulk rather than he should buy in chunks.
The benefit of buying in chunks is that whether the price goes up or down you will be in a safe position in both conditions. If the price declines, you will be having the option to buy!
“If you are really thankful, what do you do? You share”
W. Clement Stone
