Trading Activity and Price Movement
On 4 February 2026, POWERGRID recorded a total traded volume of 7,477,811 shares, translating into a substantial traded value of ₹21,492.7 lakhs. The stock opened at ₹288.8, touched an intraday high of ₹289.7, and closed near the upper band at ₹288.05, marking a day gain of 2.33%. This outperformance is notable against the power sector’s 1.27% gain and the broader Sensex’s modest 0.16% rise on the same day.
POWERGRID’s price has been on a consistent upward trajectory, registering a 14.38% return over the last three trading sessions. The stock currently trades above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained bullish momentum. This technical strength is complemented by a rising delivery volume, which surged by 122.16% to 3.56 crore shares on 3 February compared to the five-day average, indicating strong investor conviction and institutional interest.
Fundamental Assessment and Ratings
Despite the positive price action, POWERGRID’s fundamental assessment remains mixed. The company holds a Mojo Score of 35.0, categorised as a ‘Sell’ grade as of 31 December 2024, a downgrade from its previous ‘Strong Sell’ status. This reflects concerns over valuation and growth prospects relative to its sector peers. The stock’s Market Cap Grade is 1, indicating its classification as a large-cap stock with a market capitalisation of ₹2,67,950.40 crore, underscoring its dominant position in the power transmission industry.
Investors should note that the stock offers a relatively attractive dividend yield of 3.14% at current prices, which may provide some cushion amid valuation uncertainties. However, the downgrade in Mojo Grade suggests caution, as the company faces challenges that could impact earnings momentum in the near term.
Liquidity and Institutional Interest
Liquidity remains robust for POWERGRID, with the stock’s average traded value over five days supporting trade sizes up to ₹16.49 crore without significant market impact. This liquidity profile is critical for institutional investors and large traders seeking to enter or exit positions efficiently.
The surge in delivery volumes and the stock’s consistent gains over multiple sessions point to increased institutional participation. Such large order flows often signal confidence in the company’s long-term fundamentals or strategic positioning, despite short-term rating downgrades.
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Sector Context and Comparative Performance
The power sector has witnessed moderate gains recently, with the sector index rising 1.27% on 4 February 2026. POWERGRID’s outperformance by 0.55% relative to its sector peers highlights its relative strength amid a mixed market environment. The company’s role as the central transmission utility in India positions it favourably to benefit from ongoing infrastructure investments and government initiatives aimed at enhancing grid reliability and capacity.
However, the sector faces headwinds including regulatory uncertainties, tariff pressures, and evolving energy mix dynamics. These factors contribute to the cautious stance reflected in POWERGRID’s Mojo Grade downgrade, despite its strong market presence and liquidity.
Technical Indicators and Investor Sentiment
Technical indicators reinforce the bullish sentiment around POWERGRID. The stock’s consistent trading above all major moving averages suggests strong support levels and positive momentum. The intraday high of ₹289.7 on 4 February 2026 represents a 2.3% gain from the previous close, signalling robust buying interest.
Investor participation, as evidenced by the sharp increase in delivery volumes, indicates confidence in the stock’s medium-term prospects. This is particularly relevant for large institutional investors who typically seek liquidity and price stability before committing sizeable capital.
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Outlook and Investor Considerations
While POWERGRID’s recent price strength and high trading volumes reflect positive market sentiment, investors should weigh these factors against the company’s fundamental challenges and recent downgrade in Mojo Grade. The ‘Sell’ rating, although an improvement from ‘Strong Sell’, signals that the stock may face valuation pressures or slower growth ahead.
Investors with a medium to long-term horizon may find value in the stock’s attractive dividend yield and dominant market position, particularly if the company can navigate regulatory and operational risks effectively. Conversely, those seeking momentum-driven trades should monitor liquidity and price action closely, given the stock’s demonstrated capacity for rapid gains and institutional interest.
In summary, POWERGRID remains a key player in the power sector with significant trading activity and investor focus. However, a balanced approach considering both technical strength and fundamental caution is advisable for portfolio allocation decisions.
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