Jefferies expects power sector stocks to rebound in 2026 as electricity demand normalises after unseasonal rains last year curtailed consumption, particularly for consumer durables. In its latest note,
the global brokerage named JSW Energy and NTPC as its preferred picks, citing their investments in new projects and steady execution of power purchase agreements.
Jefferies said medium-term power demand growth is likely to return to a 5–6 percent CAGR, driven by data centre expansion and rising electric vehicle adoption. It added that renewable energy PPAs and additions to thermal power capacity are expected to pick up pace in 2026.
JSW Energy share price:
JSW Energy shares climbed 2.5 per cent to Rs 514.55 on January 2, extending gains for a third straight session. The stock has risen over 7 per cent in the past five days but is down more than 1 per cent over six months. On a one-year basis, it has declined over 20 per cent. JSW Energy trades at a P/E of around 39 and has a market capitalisation of Rs 89,477 crore.
NTPC share price:
State-run NTPC jumped nearly 4 per cent to ₹349.30, its highest level since October 29. The stock is up over 7 per cent in the past five days and more than 4.5 per cent over the last six months. NTPC currently trades at a P/E of 14.43, with a market capitalisation of Rs 3,38,317 crore.
JM Financial’s view:
JM Financial earlier noted that electricity demand has become increasingly sensitive to weather patterns. Power demand remained almost flat between April and November last year due to excessive rainfall. The brokerage highlighted that the APEC Climate Center sees an “enhanced probability” of above-normal temperatures in India during April–June 2026, while Skymet has indicated a more than 60 per cent probability of El Niño conditions, raising the risk of a weaker 2026 monsoon. JM Financial said it remains watchful of evolving ENSO forecasts, given their potential impact on power demand.
