After last year’s unseasonal rains reduced spending, especially for consumer durables, Jefferies predicts that power sector equities will rise in 2026 as energy demand returns to normal. The international brokerage listed JSW Energy and NTPC as its top choices in its most recent note, citing their consistent execution of power purchase agreements and investments in new projects.
According to Jefferies, the expansion of data centers and the increasing use of electric vehicles would likely boost medium-term power demand growth back to a 5–6 percent CAGR. It also stated that PPAs for renewable energy and increases in thermal power capacity are anticipated to accelerate in 2026.
Share price of JSW Energy:
On January 2, JSW Energy shares increased 2.5% to Rs 514.55, continuing advances for a third consecutive session. Over the last five days, the stock has increased by more than 7%, while over the last six months, it has decreased by more than 1%. It has decreased by more than 20% in a single year. JSW Energy has a market capitalization of Rs 89,477 crore and trades at a P/E ratio of about 39.
The price of NTPC shares:
The state-run NTPC reached its highest level since October 29, rising by almost 4% to ₹349.30. The stock has increased by more than 4.5% over the last six months and more than 7% over the last five days. At present, NTPC has a market capitalization of Rs 3,38,317 crore and a P/E ratio of 14.43.
JM Financial’s perspective:
The demand for electricity has grown more susceptible to weather patterns, as JM Financial previously reported. Due to heavy rainfall, power demand was nearly unchanged from April to November of last year. The brokerage pointed out that while Skymet has shown a more than 60% possibility of El Niño conditions, increasing the danger of a weaker 2026 monsoon, the APEC Climate Center predicts a “enhanced probability” of above-normal temperatures in India during April–June 2026. Given their possible influence on power consumption, JM Financial stated that it continues to keep an eye on changing ENSO forecasts.
