The constituent stocks of the BSE Power index, which was launched during the Muhurat trading eve, witnessed a volume of 1.9 crore shares on Monday, greater than the volumes of the shares that compose BSE Realty, BSE Auto, Bankex, BSE CD, BSE CG, BSE FMCG, BSE Healthcare, and BSE IT combined. This clearly indicates the new index is the favourite of the investors, said analysts. The BSE Power index closed at 4,394.15 points, up 6.83 points, or 0.16%, from the previous close of 4,387.32 points.
The 14 companies — BHEL, NTPC, Reliance Energy, Suzlon Energy, Tata power Co, ABB, Siemens, Crompton Greaves, Powergrid Corporation of India, GVK Power & Infrastructure, GMR Infrastructure, Torrent Power, Areva T&D India, CESC — which constitute the BSE Power index represent about 90% market capitalisation of power sector companies from the list of BSE-500 index.
On Monday, among the 14 companies, seven companies advanced and seven companies declined to close the index on a flat note. NTPC was the top gainer in the index, gaining around 5% followed by Powergrid Corporation which gained around 3%. Among the losers, BHEL lost around 1.62% and Reliance Energy was down around 1.04%. Technical analysts of various broking firms held the same view about the power sector index. One analyst opined that it is going to be the next emerging sector which is intrinsically driven keeping under the consideration the number of power plants which are going to be built in the next few years. They also mentioned that the infrastructure required for the same is going to drive the power sector which in turn will fetch the investors with good returns.
