Share Price Hike… ”Badhai Ho TATA”, Does It Confirms Its Monopoly In Energy Sector?

Tata group especially Tata power has been high in the prices of shares in the market. Where at this point of time where the economy is in the recovery stage and all the companies of the different sectors have been trying hard to co-up with the situation and cover the losses there has been a sharp boom in the share prices of the Tata power in the company observed especially in the last two weeks. Covid has been harsh on everybody whether talking in terms of emotions, finances, stability, or economy. It has printed its impact on every country despite the category of developing or underdeveloped or developed category of the economy they belong to.

Let’s just try and understand the probable reason for this sudden boom in the market prices of Tata power. Why this sharp price?


Due to the economy getting back to its normal pace and increased economic activity after the second wave, there are many sectors especially the manufacturing sector the electricity demand has been increased in comparison to normal days where this demand was comparatively lower. This evidence for the fact that recently there has been a shortage of coal for electricity production and Delhi has been openly demanded urgent transportation of coal due to high demand for electricity and shortage of coal there had been blackout situation aroused in Delhi. This can be a probable reason where Tata power has a huge opportunity over other competitors and that’s why this can be a reason for the Tata stock has gained about 25-50% in recent days. Also because of environmental issues and high electricity demand, people are switching towards other conventional resources which are environment friendly and cost-effective thereby, decreasing more dependence on coal as a raw material for electricity production. Renewable resources are not only cost-effective but also can be seen as a future supply for the coming generation. They can reach even remote areas without much difficulty. People’s preferences for renewable resources over non-renewable resources like fossil fuels, coal, etc. have started a sectorial growth in the energy sector. Investing activities in the renewable resources sector is low risk with long-term benefits. And more an environment-friendly option.

Urban people want conventional and affordable renewable energy resources. India with the new concept in the energy sector wants new sources which are both eco-friendly and affordable. Solar energy, wind energy, or tidal energy is something which India has in ample amount all we need is the technology, investment, and business vision that can put these resources to work practically and get the maximum amount of benefit out of it.

Also read: India’s Answer To China In Its Own Language, This Picture Of Galvan Valley Made Everything Clear

conventional vs non conventional resources

This also supports the concept of sustainable development. With the government policies also stressing more over renewable resources the renewable energy products sector is on a verge of greater expansion and immense opportunity for the new business or entrepreneurs. This can be supported by the fact that the government provides subsidies and other incentives to the companies to come forward with their business model and establish plants.

Brief about Tata power in the energy sector

Tata power country’s largest renewable power company with a capacity power of 2.6 GW in 11 states holds the major share in the power sector in the market in India. The company on the other hand is planning to extend this capacity furthermore. Recently Tata power has got many orders from NTPC and other companies which makes it evident that how this can be converted into an opportunity for Tata power in the future to flourish and expand in the power sector. Recently also Tata group has signed a contract for launching e-vehicles in India which will require a charging station. This would an opportunity for the Tata group and they indirectly will be benefitted from this. Right Now Tata power has 961 charging stations in India but due to the higher switch towards e-vehicles, the demand for charging stations will rise more.TVS has done a partnership with Tata group which will provide more opportunities for Tata power. All these current recent agreements and contract signed by the Tata group shows how much potential the energy sector has especially with conventional element and how one can trap this opportunity. Tata group is considered to be the most influential business group having a glorious history of business itself.

It is considered to have more expertise and employees more of like panels of people who made their efforts in the direction of achieving the organizational goal more efficiently and effectively. They have such investment in such sectors which now turned to be a profitable project based on their vision and planning. The risk factor is also a factor that is inseparable and considered to be an important element whenever it comes to profit-making. An organization is believed to make some decisions in their entire business life which are investing decisions, dividend decisions, and wealth maximization. Wealth maximization is something that is like maximizing the earning of the shareholders of the organization and thereby increasing the market share prices. Increasing the market share of the company is the prime objective so does Tata also. Therefore, above discussed reasons are quite enough to tell that why the market share price of Tata group especially Tata power has seen increases in the last two weeks.


A true businessman is considered to not only have the risk-taking element in itself but also should be able to guess the potential opportunities in coming near future. A successful businessman is considered to have a strong vision and firm belief. He/she is believed to have faith in oneself first then before carrying on with the business plans and projects. A strong believer in oneself can dare to dream bigger and can turn any odd circumstances into a favorable one which is itself an art that comes with great willpower and is the willingness to do hard work. Also never give up on your dreams. If an individual can trap the probable opportunities coming in the future and invest wisely keeping the long-term benefit factor as a priority the business is no doubt going to flourish more in the future with a stronger foundation built in the present.