NTPC and BHEL Stocks Rebound Following New Joint Venture Announcement

23 Jul 2024 , 12:02 PM

Shares of NTPC Ltd. and BHEL Ltd. saw a notable recovery from their intraday lows after Finance Minister Nirmala Sitharaman announced the formation of a joint venture (JV) between the two companies. The JV will focus on establishing an 800 MW Ultra Super Critical Thermal Power Plant, with the government providing the necessary fiscal support.

Ultra Supercritical power plants operate at temperatures and pressures above the critical point of water, where liquid and gas phases are indistinguishable. India’s first Ultra Supercritical Power Plant, commissioned by NTPC in Madhya Pradesh in 2019, has a capacity of 660 MW.

Following the announcement, NTPC’s shares climbed 3% to ₹384.5, recovering 3.5% from the day’s lows. BHEL’s shares also gained 2.7%, trading at ₹313.15 after rebounding more than 5% from their lowest point of the day.