Power Grid Corporation of India Ltd Sees Robust Trading Activity Amid Sector Gains

Trading Volume and Value Surge

On 3 February 2026, POWERGRID witnessed a total traded volume of 2.81 crore shares, translating into an impressive traded value of ₹78,415.55 lakhs. This substantial turnover underscores the stock’s liquidity and the strong appetite among market participants. The previous close stood at ₹270.40, while the stock opened higher at ₹276.05, marking a gap-up of 2.09%. Throughout the session, the share price oscillated between a low of ₹273.25 and a high of ₹282.90, eventually settling at ₹281.55 as of 11:34 AM IST, representing a day gain of 5.18%.

Price Momentum and Moving Averages

POWERGRID’s price action has been notably positive, with the stock gaining for two consecutive days and delivering a cumulative return of 12.19% over this period. The current price is trading above its 5-day, 20-day, 50-day, and 100-day moving averages, signalling short- to medium-term bullish momentum. However, it remains below the 200-day moving average, indicating that longer-term resistance levels have yet to be breached. This technical setup suggests a cautiously optimistic outlook among traders and investors.

Sectoral Context and Comparative Performance

The power generation and distribution sector has also experienced a healthy uptick, with a sectoral gain of 4.57% on the day. POWERGRID’s 4.44% one-day return closely aligns with the sector’s performance and notably outpaces the Sensex’s 3.06% gain, highlighting the stock’s relative strength within its industry. This outperformance is particularly significant given the stock’s large-cap status and market capitalisation of ₹2,59,115 crore, which typically correlates with more stable but less volatile price movements.

Institutional Interest and Delivery Volumes

Investor participation has been on the rise, as evidenced by the delivery volume of 1.98 crore shares on 2 February 2026, which surged by 36.72% compared to the five-day average delivery volume. This increase in delivery volume indicates a higher proportion of shares being held by investors rather than traded intraday, reflecting confidence in the stock’s medium-term prospects. Institutional investors appear to be accumulating positions, supported by the stock’s liquidity profile that comfortably accommodates trade sizes of up to ₹12.13 crore based on 2% of the five-day average traded value.

Dividend Yield and Market Grade Assessment

POWERGRID offers a relatively attractive dividend yield of 3.29% at the current price level, which adds to its appeal for income-focused investors. Despite this, the company’s MarketsMOJO Mojo Score stands at 30.0, with a Mojo Grade of ‘Sell’ as of 31 December 2024, an upgrade from a previous ‘Strong Sell’ rating. The market cap grade is rated at 1, reflecting its large-cap stature but also signalling cautious sentiment from the analytical framework. This mixed rating suggests that while the stock has shown recent price strength, underlying fundamentals or valuation concerns may temper enthusiasm among some investors.

Liquidity and Order Flow Dynamics

The stock’s liquidity remains robust, supported by its high traded value and volume. The ability to handle sizeable trade orders without significant price disruption is a key factor attracting institutional investors. The large order flow observed today aligns with the stock’s rising investor participation and price momentum, reinforcing its status as a high-value trading candidate within the power sector.

Outlook and Strategic Considerations

While POWERGRID’s recent price gains and volume surge are encouraging, investors should weigh these developments against the company’s current Mojo Grade and broader market conditions. The stock’s performance is in line with sectoral trends but remains below its 200-day moving average, indicating potential resistance ahead. The dividend yield and improving investor interest provide positive signals, yet the ‘Sell’ rating advises caution. Investors may consider monitoring the stock for confirmation of sustained momentum or look towards alternative opportunities within the sector.

Comparative Sector Analysis

The power sector’s recent rally, with a 4.57% gain, has been driven by improving demand fundamentals and government initiatives aimed at infrastructure enhancement. POWERGRID, as a key player in transmission infrastructure, stands to benefit from these tailwinds. However, investors should remain vigilant about regulatory risks and capital expenditure cycles that could impact profitability. The stock’s large-cap status and market cap of ₹2,59,115 crore provide a degree of stability, but also imply that sharp price movements may be moderated by institutional holdings and market depth.

Institutional Sentiment and Market Positioning

Institutional investors have shown increased interest, as reflected in the rising delivery volumes and large order flows. This trend suggests confidence in the company’s medium-term prospects despite the cautious Mojo Grade. The stock’s liquidity profile supports sizeable trades, making it a preferred choice for portfolio managers seeking exposure to the power transmission segment. The recent upgrade from ‘Strong Sell’ to ‘Sell’ indicates a potential shift in sentiment, though it stops short of a full endorsement for accumulation.

Conclusion

Power Grid Corporation of India Ltd’s strong trading activity on 3 February 2026 highlights its prominence among high-value stocks in the power sector. The combination of robust volume, price gains, and rising institutional participation paints a picture of renewed investor interest. However, the current Mojo Grade and technical indicators counsel a measured approach. Investors should balance the stock’s attractive dividend yield and sectoral tailwinds against valuation and longer-term resistance levels. Monitoring ongoing market developments and comparative alternatives within the sector will be crucial for informed decision-making.

Unlock special upgrade rates for a limited period. Start Saving Now →