Hydro Power Stocks: The Shares of SJVN Limited are in focus on Friday July 12. The company’s shares rose more than 10% within just two days. There is a big reason behind this rise in SJVN shares. Actually, Insurance company Life Insurance Corporation of India (LIC) has bought 0.53% stake in this company. Let us tell you that SJVN shares hold a total 2.26% stake in this company according to the shareholding data available on BSE. There has been an increasing number of retail shareholders also seen in SJVN Limited . Retail Shareholders increased to 12 lakh within just three months.
What’s the Story
Recently hydro power stocks are under the radar after news came out that Indian government plans to expand Hydro power capacity. According to multiple reports, the Government is aiming to increase Hydro power generation capacity to 11.9 GW in the next 5 years.
After the news circulation, LIC increased its stake to 2.26% in SJVN shares. Mutual funds of India have also increased their stake. At the end of the June quarter, mutual funds held 1.56% stake in SJVN, up from 1.54% during the March quarter in the previous fiscal. However, the stake of foreign portfolio investors has remained almost stable. The government is still the largest shareholder in SJVN with an 81.85% stake.
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SJVN Share Condition
As per the technical analysis, SJVN shares trading neither in ‘overbought’ nor ‘oversold’ territory on the chart with the Relative Strength Index (RSI) at 61.7. An RSI reading above 70 indicates that the stock is in ‘overbought’ territory. If you look at the simple moving averages (SMA) you can clearly see the stock is trading above all the moving averages. The stock is currently trading above 5-day, 20-day, 50-day, 100-day, 150-day and 200-day simple moving averages (SMA).
SJVN shares have gained as much as 67% YTD. In the last one year, it has delivered an impressive return of 222%. The company has a market cap of Rs 61,120.10 crore. The 52-week high is Rs 161.45 and the 52-week low Rs 45.20.
Future Prospective
The government is focused on building more hydro projects with ongoing 37 projects with a capacity of 15GW. Government will add more 50GW through new projects. Considering this, the future of this company looks promising however investors should note that the government is still the largest shareholder in SJVN with a 81.85% stake.
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