Power Grid Corporation of India Ltd plans to expand its grid in South Asia
Power Grid Corporation of India Ltd (PGCIL) is India’s primary electric power transmission company which has engaged in transmission of bulk orders across states in the country. The company owns and runs 90% of the country’s interstate and inter regional electric power of transmission system. The company’s portfolio is diversified into telecom business by utilizing the ULDC schemes through the wide-spread transmission infrastructure. The company was established with the responsibility of planning, executing, owning, operating and maintaining the high voltage transmission systems in the country.
The consumption of electricity has been declining since the 21-day lockdown that has been announced in the country due to the widespread of the COVID-19. The lockdown of various industries across the globe due to the rising fear of the spread of COVID-19 has caused many disruptions in the business of various companies leading to demand and supply mismatch and price fall. The following graph shows the stability in the market sentiment for the stock as the bullish trend of the stock continues for a straight three sessions. The downward trend of the stock has been caused due to the halt of operations in few states, whereas in states of Uttar Pradesh and Bihar, the consumption of power have increased due to the use of household consumption.
The company’s operations is very vital in the country as it produces electricity through its state-owned transmission plants which shows that the company has a low operational risk during the outbreak. The decline in capex and capitalization payouts would be a concern for the company as the realization of earnings would be occurring in the coming years which would boost the future earnings. The Coronavirus pandemic has also affected various industries which are relied upon for supplies as various energy projects have been halted due to the disruption in supplies.
The following chart of Bollinger bands shows a change in the trend for the stock as it rises constantly for straight three sessions as the demand for power in the country has been increasing in few states due to the lockdown. The graph also shows that the candlesticks are moving towards the upper band which indicates a bullish trend for stock. The price movements have been volatile over the trading sessions as the formation of head and tail in the candlesticks can be observed.
The government has also planned for connecting neighboring countries through a regional power grid that would be used for trading electricity with the surrounding nations. The country’s installed power generation capacity currently stands at 396 GW against the peak demand of 183 GW in the country provides a vital market for the state-run power entities to trade incase of excess electricity production. As much as 8,014 mn units of electricity was supplied ot Nepal, Bangladesh and Myanmar in FY19. Also, with the reduction in the Repo-rate by RBI to 4.4% to boost the economy activity in the country would help in short-term borrowing. The growing market of renewable energy in India has greater demand which has been affected by the Coronavirus pandemic as the effects would last in the economy until an increase in economic activity is reported.
The consumption of electricity has been declining since the 21-day lockdown that has been announced in the country due to the widespread of the COVID-19. The lockdown of various industries across the globe due to the rising fear of the spread of COVID-19 has caused many disruptions in the business of various companies leading to demand and supply mismatch and price fall. The following graph shows the stability in the market sentiment for the stock as the bullish trend of the stock continues for a straight three sessions. The downward trend of the stock has been caused due to the halt of operations in few states, whereas in states of Uttar Pradesh and Bihar, the consumption of power have increased due to the use of household consumption.
The company’s operations is very vital in the country as it produces electricity through its state-owned transmission plants which shows that the company has a low operational risk during the outbreak. The decline in capex and capitalization payouts would be a concern for the company as the realization of earnings would be occurring in the coming years which would boost the future earnings. The Coronavirus pandemic has also affected various industries which are relied upon for supplies as various energy projects have been halted due to the disruption in supplies.
The following chart of Bollinger bands shows a change in the trend for the stock as it rises constantly for straight three sessions as the demand for power in the country has been increasing in few states due to the lockdown. The graph also shows that the candlesticks are moving towards the upper band which indicates a bullish trend for stock. The price movements have been volatile over the trading sessions as the formation of head and tail in the candlesticks can be observed.
The government has also planned for connecting neighboring countries through a regional power grid that would be used for trading electricity with the surrounding nations. The country’s installed power generation capacity currently stands at 396 GW against the peak demand of 183 GW in the country provides a vital market for the state-run power entities to trade incase of excess electricity production. As much as 8,014 mn units of electricity was supplied ot Nepal, Bangladesh and Myanmar in FY19. Also, with the reduction in the Repo-rate by RBI to 4.4% to boost the economy activity in the country would help in short-term borrowing. The growing market of renewable energy in India has greater demand which has been affected by the Coronavirus pandemic as the effects would last in the economy until an increase in economic activity is reported.
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