Stock Market News: Shares of these power companies are seeing a surge this summer! Morgan Stanley reveals the top power stocks

News Topical, Digital Desk : India is experiencing a rapid increase in heat this year, which could increase electricity demand in the coming months. According to a report by brokerage firm Morgan Stanley, this situation could benefit thermal power companies.

The report stated that electricity demand was relatively low in FY26, due to a cooler-than-normal summer and colder winter, which reduced peak power consumption.

Electricity demand is expected to increase rapidly at the beginning of FY2027. Temperatures have already risen in many parts of the country, and heatwaves are developing in some areas. This could lead to a rapid increase in electricity demand in the coming days. Furthermore, electricity generation sources may also face pressure. According to the report, electricity generation from gas and hydropower may decline in the first half of the year. Ongoing tensions in the Middle East could impact global gas supplies, potentially reducing the availability of LNG for India . Furthermore, the Himalayan region is expected to experience a very dry spring this year , which could impact hydropower production. In FY2026, gas contributed approximately 2% of India's total electricity generation, and hydropower contributed approximately 9%. Consequently, there may be a greater reliance on coal-fired thermal power plants to meet the growing electricity demand. Morgan Stanley believes that solar power may need to be limited in some areas, allowing thermal power plants to increase production. 

These companies can benefit

• According to the report, rising merchant power prices could improve the earnings of companies like Adani Power and JSW Energy.
• Apart from this, Tata Power shares may also get a positive impact in case of any agreement related to the Mundra project or in case Section 11 of the Electricity Act comes into effect .
• Torrent Power can benefit from merchant sales of gas if it has availability of physical gas cargoes.
• At the same time, if the power shortage increases, the valuation (price-to-book multiple) of NTPC shares may also improve.
• Overall, the future may remain positive for thermal power companies in India amid rising heat and supply-related risks.

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