BSE Power index up 2% on earnings, HVDC stocks rally (2026)

Power shares lead the market on Wednesday

Shares of power generation and allied companies were in demand on Wednesday, with the BSE Power index rising as much as 2% in intraday trade on the back of strong earnings and a healthy outlook. At 02:57 PM, the BSE Power index was up 1.7% at 8,065.64, making it the top gainer among sectoral indices. Over the same time, the BSE Sensex was up 0.23%. The sector move extended a broader uptrend after the index touched a record high of 8,354.11 on May 8, 2026.

The day’s action was led by high-voltage equipment and transmission names, where investors focused on order momentum, capital investment plans, and multi-year grid expansion themes. Stocks linked to HVDC and transmission buildouts saw sharper moves, supported by recent company updates and brokerage coverage notes.

Index snapshot and sector levels

The index performance was notable not only for the gain but also for how close it remained to recent peaks. The BSE Power index’s record high of 8,354.11 on May 8, 2026, has become an important reference point for traders. Wednesday’s 8,065.64 reading placed the index below that peak but still near historic levels.

For investors tracking sector breadth, the rally was not limited to one stock. Multiple large and midcap power equipment names were up, indicating wider participation in the move.

Hitachi Energy India hits a new high

Hitachi Energy India touched a new high of ₹35,495, rising 6% in intraday deals on the BSE. The stock price surpassed its previous high of ₹35,094, which was recorded on May 8, 2026. The move came amid sustained investor interest in HVDC and power transmission plays, where order visibility and long-dated project pipelines have been key narratives.

A separate brokerage initiation cited a strong HVDC positioning for Hitachi Energy India, highlighting over ₹20,000 crore of order traction in HVDC projects and a 48% share of India’s operational HVDC capacity. IDBI Capital had initiated coverage with a ‘Buy’ rating and a price objective of ₹35,001, noting that the target implied a potential 15.4% upside from recent closing prices.

Siemens Energy India jumps on heavy volumes

Shares of Siemens Energy India surged 9% to ₹3,455 in intraday trade on heavy volumes. The stock was trading close to its 52-week high of ₹3,624, last touched on September 23, 2025. Trading activity also picked up sharply, with average volumes jumping more than six-fold and a combined 2.37 million shares changing hands across the NSE and BSE.

The demand outlook referenced by the company remained anchored in electrification, decarbonization, energy security priorities, and export opportunities. Siemens Energy disclosed that its backlog rose 22.2% year-on-year to ₹18,433 crore, supporting near-term revenue visibility.

GE Vernova T&D India rallies; order inflows stand out

GE Vernova T&D India gained 9% to ₹4,800 in intraday deals. The stock traded close to its 52-week high of ₹4,849.85, which was touched on May 8, 2026. Earlier, on Monday, May 18, 2026, GE Vernova T&D India said it delivered a stellar year, marked by record order bookings and strong execution.

The company also said it initiated capital investments of more than ₹1,000 crore across multiple product lines and facilities. In the January to March quarter (Q4FY26), order inflows jumped 188% year-on-year to ₹8,610 crore, driven by large renewable evacuation and HVDC transmission projects.

Other movers: ABB, Siemens, CG Power

The broader power equipment pack also traded firm. Siemens, ABB India and CG Power and Industrial Solutions were up 4% each in intraday trade. The breadth matters because it suggests investor attention is not restricted to a single catalyst, but rather to the sector’s multi-year demand drivers.

Alongside company-specific order commentary, the market also reacted to a steady stream of broker views on grid capex, export demand, and execution capacity across manufacturers.

Broker calls and targets: a busy coverage cycle

Brokerage commentary contributed to the day’s tone. A brokerage maintained a ‘BUY’ rating on Siemens Energy India with an unchanged target price of ₹3,700, based on 55x two-year forward earnings.

JP Morgan also initiated coverage on the power equipment space, citing a decadal upcycle driven by renewable-led grid expansion, rising electrification, and global demand tailwinds. The brokerage initiated Overweight on Hitachi Energy India with a target price of ₹29,000 and on GE Vernova with a target price of ₹4,300. Siemens Energy India was initiated at Neutral with a target price of ₹2,600.

Transmission capex and HVDC: what’s driving the cycle

India’s transmission capex pipeline remains a core underpinning for the sector. The National Electricity Plan (NEP) FY23-32 outlines investment of ₹900,000 crore in transmission infrastructure. Separately, India plans to increase HVDC operational capacity to 66.75 GW by FY32, with an estimated investment of about ₹190,000 crore.

The HVDC opportunity is also being framed in order potential terms. JP Morgan estimates a ₹140,000 crore opportunity in the HVDC sector over the next five to six years. Project pipelines were also highlighted, including a 32.3 GW HVDC pipeline, with 14.5 GW already awarded.

Key numbers at a glance

Market impact: gains supported by orders, but valuations in focus

The immediate market impact was a sharp repricing in HV and transmission names during the session, with several stocks trading near record or 52-week highs. Investors appeared to be reacting to the combination of strong order inflows, rising backlogs, and visible capex plans aimed at expanding capacity. Export opportunities were also cited as a support factor, with export share at around 27% in FY25 for both Hitachi Energy and GE Vernova India, up from 20% and 22% respectively in FY21.

At the same time, valuations have become part of the discussion alongside growth. The text cited high P/E multiples for several names, including around 110 for CG Power, 97-101 for GE Vernova T&D India, and above 150 for Hitachi Energy India. It also noted a divergence in return profiles, with Hitachi Energy India’s ROE at 12-14% versus GE Vernova T&D India showing over 40% ROE.

Why the story matters: execution and capacity constraints

The sector’s demand drivers are closely linked to India’s renewable buildout and the need to move electricity from generation clusters to consumption centres. Large renewable evacuation and HVDC transmission projects were directly referenced as key drivers of recent order inflows. The text also pointed to capacity constraints as an issue on the supply side, noting that fewer schemes were awarded in FY26 versus FY25 (16 versus 45), which was attributed to constraints rather than weaker demand.

For investors, the balance between multi-year opportunity and near-term execution remains central. With capacity expansions announced by most players, the industry is positioning to meet sustained demand from domestic and export markets. But after sharp stock moves across the pack, price performance is likely to remain sensitive to fresh order wins, export momentum, and margin delivery.

Conclusion

Wednesday’s rally in the BSE Power index reflected a mix of strong company updates, improving backlog visibility, and an active brokerage coverage cycle around HVDC-led grid expansion. Hitachi Energy India, Siemens Energy India and GE Vernova T&D India led the gains as investors tracked orders, capex plans and targets. The next set of cues will likely come from additional order announcements, progress on capacity expansion plans, and updates on transmission project awards under India’s longer-term grid investment roadmap.