NHPC shares surged 12% over two sessions. Here’s why:
The MoU has been signed with Gujarat Power Corporation Limited (GPCL) for a proposed investment of Rs 4,000 crore in the Kuppa pumped storage project (750 MW) at Chhota Udaipur in Gujarat, with a proposed investment start year of 2024-25. On Thursday, the company informed exchanges about the development.
This comes as part of investment promotion activities for Vibrant Gujarat Global Summit 2024.
The stock is receiving significant interest from investors and is trading at fairly high volume. Over 2.25 billion shares were traded on NSE at around 9:35 am. The trading value of the stock on NSE was Rs 166 crore. On BSE, trading volume surged 1.31 times.
NHPC stock has delivered a return of 85% in one year, outperforming the Nifty which has returned nearly 20% during this period. The stock is currently trading above its 50-day and 200-day simple moving average (SMA).
Today’s price action has put the stock into overbought territory with RSI above 70. Meanwhile, MFI, another momentum indicator, is approaching overbought territory. Day’s MFI, as reported by Trendlyne, was 68.2. Anything above 70 is considered overbought, anything below 30 is oversold.
According to Trendlyne, the stock has traded with relatively high stability, as suggested by its one-year beta of 0.3. The hydropower company reported revenue of Rs 3,113.8 crore for the quarter ended December 31, 2023, down from Rs 3,529.3. crore in the same period last year. Net profit for the reported quarter was Rs 1,545.8 crore, slightly higher than the Rs 1,535.6 crore reported by NHPC in the previous year.
(You can now subscribe to our subscription. ETMarkets WhatsApp Channel)
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)
