New Delhi, January 2, 2026: Shares of NTPC and JSW Energy rallied up to 4% on Friday, following a positive outlook from global brokerage Jefferies, which expects power stocks to rebound in 2026.
According to Jefferies, the Indian power sector is poised for growth in the new year as renewable energy purchase agreements (PPAs) gain momentum and thermal power capacity additions continue to rise. The brokerage noted that these developments could strengthen both earnings and investor confidence in listed power companies.
Market analysts said that the combined impact of government policies favoring renewable energy and ongoing investment in conventional power infrastructure has created a supportive environment for power stocks. Investors reacted positively, driving the intra-day gains in major power players such as NTPC and JSW Energy.
The broader Nifty Metal & Power indices also reflected optimism, with many sectoral peers witnessing steady buying. Jefferies highlighted that with 2025 showing a strong recovery in energy demand and improving regulatory support, 2026 could see power companies delivering solid operational and financial performance.
Industry observers believe that the sectorтАЩs growth trajectory will be further supported by IndiaтАЩs push for clean energy adoption, which is expected to create additional avenues for renewable energy agreements and capacity expansion.
NTPC, IndiaтАЩs largest power generator, and JSW Energy, a key private player in thermal and renewable power, are expected to benefit directly from these structural tailwinds. Analysts suggest that investors monitor quarterly performance and capacity addition announcements closely, as these will likely influence short-term stock movements.
With the positive sentiment surrounding the sector, market watchers expect power stocks to continue drawing institutional and retail investor interest, making them among the top picks for 2026 portfolios.
