Top 10 Power Stocks Dominating the Nifty Power Index: Is Your Portfolio Missing These?
The Nifty Power Index tracks the performance of stocks from the power sector within the Nifty Total Market. It includes stocks from eligible basic industries in the power sector, with each stock’s weight determined by its free-float market capitalisation.
The index uses a capped free-float market capitalisation methodology and is rebalanced semi-annually. It was launched on June 12, 2026, has a base date of April 1, 2005, and a base value of 1,000. The index can be used for benchmarking fund portfolios and developing index funds, exchange-traded funds (ETFs), and structured products.
The Nifty Power Index has a dividend yield of 1.56, a price-to-earnings (P/E) ratio of 19.06, and a price-to-book (P/B) ratio of 2.32. Its performance can be evaluated using indicators such as returns, standard deviation, correlation, and beta relative to the Nifty 50.
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NTPC Ltd
NTPC Ltd . is the biggest producer of power in India and specializes in producing electricity using thermal, hydro, solar, and wind energy sources. NTPC is not only diversifying into renewable energy sources but also continues to produce electricity using traditional power plants. The company is working on energy storage, green hydrogen production, and other advanced energy solutions.
The company holds the highest weightage of 20.11 percent in the Nifty Power Index. It has a decent ROCE of 8.92 percent and ROE of 15.1 percent, indicating efficient use of capital and good returns for shareholders.
Power Grid Corporation of India Ltd
Power Grid Corporation of India Ltd. is a central public sector undertaking that is involved in the transmission of electricity in India. This undertaking engages in the design, operation, and maintenance of high-voltage transmission systems, substations, and other related facilities to aid the transmission of electricity from power generating centers to areas of consumption.
The company holds the second-highest weightage of 18.38 percent in the Nifty Power Index. It has a decent ROCE of 9.10 percent and ROE of 15.3 percent, indicating efficient use of capital and good returns for shareholders.
Adani Power Ltd
Adani Power Ltd . is a power generation company that is privately owned and operates in the Adani Group. The company specializes in the construction of thermal power plants from which it generates electricity and supplies it to various distributors in India. The company's major concern is the expansion of its power generation capacity, enhancing its efficiency, and addressing the increasing electricity demands in the country.
The company holds the third-highest weightage of 13.23 percent in the Nifty Power Index. It has a good ROCE of 17.2 percent and ROE of 21.1 percent, indicating efficient use of capital and good returns for shareholders. Its debt-to-equity ratio is 0.84, showing that the company has no significant debt burden.
Tata Power Co. Ltd
Tata Power Company Limited is a power company under the Tata Group, which engages in power generation, transmission, distribution, and renewable energy activities. It has investments in thermal, hydro, solar, and wind power. Additionally, it is diversifying into rooftop solar panels, EV charging, and energy solutions to take advantage of India’s growing emphasis on clean energy.
The company holds the fourth-highest weightage of 9.40 percent in the Nifty Power Index. It has a decent ROCE of 10.5 percent and ROE of 10.2 percent, indicating efficient use of capital and good returns for shareholders.
Adani Energy Solutions Ltd
Adani Energy Solutions Ltd. belongs to the Adani Group and works in the sector of electricity transmission and distribution. The firm constructs and maintains electricity transmission infrastructure and works in the power distribution sector via its utility business. Also, it has been diversifying its operations into smart meters and energy infrastructure for the modernization of India’s electricity distribution grid.
The company holds the fifth-highest weightage of 6.68 percent in the Nifty Power Index. It has a decent ROCE of 9.65 percent and ROE of 9.44 percent, indicating efficient use of capital and good returns for shareholders.
Adani Green Energy Ltd
Adani Green Energy Ltd . is a green energy company that forms part of the Adani group. The company is involved in the development, ownership, and operation of utility-scale solar, wind, and hybrid green energy projects within India. The company is focused on increasing its green energy generation capacity in response to increasing demand for green energy. Its growth depends on factors such as project commissioning, PPAs, and cost of capital.
The company holds the sixth-highest weightage of 6.68 percent in the Nifty Power Index. It has a decent ROCE of 7.39 percent and ROE of 11.4 percent, indicating efficient use of capital and good returns for shareholders.
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JSW Energy Ltd
JSW Energy Limited is a company that generates power and provides energy solutions for customers within the JSW group. It operates across a variety of power generation technologies, including thermal, hydro, wind, and solar power generation, as well as energy storage and emerging technologies. JSW Energy is increasing its power generation and storage to meet the rising needs of India’s energy consumption.
The company holds the seventh-highest weightage of 4.73 percent in the Nifty Power Index. It has a decent ROCE of 8.16 percent and ROE of 7.51 percent, indicating efficient use of capital and good returns for shareholders.
NHPC Ltd
NHPC Ltd. is a public sector company that operates power generation plants and specializes in hydro-electric power projects in India. NHPC Ltd. has also diversified to include solar energy projects, among others, as part of its diversification efforts. NHPC plays a significant role in electricity production via hydropower that could serve as back-up to renewable energy sources.
The company holds the eighth-highest weightage of 4.28 percent in the Nifty Power Index. It has a decent ROCE of 5.75 percent and ROE of 9.32 percent, indicating efficient use of capital and good returns for shareholders.
Torrent Power Ltd
Torrent Power Ltd. is an integrated power company that is part of the Torrent Group family and deals with generation, transmission, and distribution of power. The company has a wide range of generation capacity in gas-based power plants, coal-based power plants, and renewable energy power plants. It also supplies electricity to consumers in selected cities and regions.
The company holds the ninth-highest weightage of 3.69 percent in the Nifty Power Index. It has a decent ROCE of 13.7 percent and ROE of 12.5 percent, indicating efficient use of capital and good returns for shareholders. Its debt-to-equity ratio is 0.73, showing that the company has no significant debt burden.
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NLC India Ltd
NLC India Limited, formerly called Neyveli Lignite Corporation India Limited, is a public sector undertaking involved in lignite mining, coal mining, and generation of power. The company has been developing lignite-based thermal power stations along with venturing into green energy, especially solar and wind power. The company plans to develop a diversified energy portfolio along with serving the electricity needs of India.
The company holds the tenth-highest weightage of 1.48 percent in the Nifty Power Index. It has a decent ROCE of 8.42 percent and ROE of 11.9 percent, indicating efficient use of capital and good returns for shareholders.