Torrent Power shares witnessed a 4% decline after Morgan Stanley downgraded the stock to Equal-Weight (EW), citing lower merchant power profits. The de-rating of thermal independent power producers (IPPs) has been sharp due to slower power demand growth and increased reliance on import-dependent battery tenders.
As per Morgan Stanley, market sentiment suggests that thermal plant utilization may remain weak in the near term. The valuation of utility and power-related capital goods stocks has also corrected amid a slowdown in power demand growth. However, analysts expect power demand to rebound from Q2FY26, driven by increased consumption from industrial and consumer segments.
Torrent Power shares opened at ₹1,353.50, reaching a high of ₹1,358.15 and a low of ₹1,291.70. The stock remains volatile, with a 52-week high of ₹2,037.00 and a low of ₹1,056.95. As of 10:31 AM, the shares were trading 4.13% lower at Rs 1,294.35.
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