Adani Power Share Price Jumps 8% with Strong Surge in Volume; Looks Set to Extend Gains to 5th Session in a Row

Surging Momentum Continues for Adani Power

Adani Power Ltd shares rallied over 8% intraday on Tuesday, June 10, 2025, as strong investor interest and robust trading volumes fueled the stock’s fifth consecutive session of gains. The stock touched an intraday high of ₹789 on the NSE, marking its highest level in over a year. This rally continues Adani Power's stellar performance in recent weeks, positioning it as one of the standout players in the Indian power sector.

As of 2:30 PM IST, shares of Adani Power were trading at ₹777.45, up 7.65% from the previous close, with over 3.8 crore shares exchanging hands—significantly higher than the 30-day average volume.

Investor Interest Returns Amid Sector Tailwinds

The renewed investor interest in Adani Power is supported by broader bullishness in the power and utilities sector. With peak summer demand driving electricity consumption across the country, thermal power companies are witnessing improved load factors and rising merchant power prices.

"Adani Power is benefiting from the macro trend of rising power demand and the company’s increasing visibility in long-term PPAs," said Rahul Jain, Senior Power Sector Analyst at Nuvama Institutional Equities. "The market is rewarding companies that can scale capacity, maintain healthy operating margins, and reduce debt, and Adani Power checks many of those boxes."

Volume Surge Signaling Institutional Buying

According to data from the NSE, the sharp rise in volumes is a signal of strong institutional accumulation. FII (foreign institutional investor) data for the past few sessions also show net positive inflows into Adani group companies, led by power and logistics.

Market participants suggest that the recent positive developments—including strategic partnerships and capacity expansions—are also acting as tailwinds. "The breakout in Adani Power is supported by both fundamentals and technical strength," said Ankita Mehta, Technical Analyst at Prabhudas Lilladher. "We see the stock having immediate resistance at ₹810, and crossing that could open up levels of ₹850 and ₹880 in the near term."

Fundamental Drivers Behind the Rally

1. Rising Demand for Thermal Power: Amid a scorching summer and delayed monsoon in parts of India, the country's electricity demand has soared to record highs. Adani Power, with a total capacity of over 14,000 MW, is well-positioned to capitalize on this surge.

2. Debt Reduction and Margin Expansion: The company’s March 2025 quarterly results showed a significant decline in net debt, while operating EBITDA margins remained above 40%. This strong financial profile has reassured investors concerned about leverage.

3. Long-Term Growth Visibility: With plans to add another 1,600 MW through upcoming projects in Madhya Pradesh and Maharashtra and increasing export potential to neighboring countries like Bangladesh, Adani Power is charting a long-term growth trajectory.

4. Adani Group Sentiment Recovery: After facing significant volatility post-Hindenburg allegations in early 2023, Adani Group stocks have steadily recovered. Improved disclosures, credit rating upgrades, and asset monetization have helped restore investor confidence.

Technical Picture: Rally May Have More Legs

On the technical charts, Adani Power has formed a strong bullish continuation pattern. The stock broke out from a flag formation on daily charts last week and has since witnessed strong follow-up buying.

"The Relative Strength Index (RSI) is above 70, indicating strong momentum, but not yet in overbought territory for a stock with this kind of volume support," said Mehta. "The MACD crossover also confirms the bullish setup."

If current trends sustain, the stock is likely to move towards ₹850 in the short term, with key support placed near ₹730.

What Should Investors Do?

Market analysts suggest a balanced view. Long-term investors looking for exposure in the power sector may consider accumulating the stock on dips. However, short-term traders are advised to keep trailing stop-losses given the sharp rally.

"Adani Power is no longer the highly-leveraged entity it used to be," said Harshad Shah, Portfolio Manager at PPFAS Mutual Fund. "The company has improved its corporate governance, shown discipline in bidding, and is focusing on steady, long-term cash-generating assets. For patient investors, this could be a solid compounder over the next 3–5 years."

Adani Power’s 8% surge amid heightened volumes underscores growing market conviction in the company's fundamentals and sectoral prospects. With the power sector poised for structural tailwinds and the Adani Group returning to investor favor, Adani Power appears well-placed to ride the next wave of energy demand in India and the broader South Asian region. However, as with any rally, investors should monitor valuation comfort and execution on expansion plans before increasing exposure.