The shares of Power Finance Corporation (PFC) jumped more than 5% to hit a fresh 52-week high of Rs 467 apiece on Thursday. Rising temperatures across the country raised expectations of peak power demand, boosting investor sentiment for the NBFC focusing on India’s power sector. The India Meteorological Department (IMD) has issued heatwave warnings for several parts of India.
JM Financial reported that power demand peaked in early March but cooled off due to a weather disturbance. The massive cloud band across North India is now moving away. Skymet does not forecast extreme heat in the plains of North India during April 2026, despite rising temperatures. However, intense pre-monsoon heat is expected beginning mid-May.
PFC is likely to benefit from the strong surge in power demand. Additionally, state-owned NBFCs like PFC, along with REC, IRFC, and HUDCO, are likely to be classified as Upper-Layer NBFCs under the Reserve Bank of India’s proposed shift to an asset-size-based threshold. Last week, RBI proposed a significant overhaul of its framework for identifying Upper-Layer NBFCs.
PFC shares have been active this year after Finance Minister Nirmala Sitharaman announced the restructuring of PFC and REC to improve efficiency in the public sector NBFC space. The PFC board has approved the merger with REC.
