Power Stocks Rally Hinges on Demand, Solar May Face Oversupply in 3-4 Years: Axis Capital Power stocks have shown resilience during market volatility, but sustained gains will depend on rising demand, according to Axis Capital. Sumit Kishore, Executive Director at the firm, highlighted that the sector’s recent performance has been driven by its defensive appeal, particularly in risk-off environments. He emphasized that the power sector, including both traditional and renewable energy sources, could act as a safe haven if geopolitical tensions, such as the ongoing US-Iran conflict, continue to disrupt global markets. Kishore noted that while solar capacity has surged with record additions, the sector risks becoming oversupplied within the next 3-4 years if demand growth does not keep pace. This concern is amplified by the rapid expansion of renewable energy infrastructure in India, where FY26 saw a historic increase in capacity additions. Specifically, 45 gigawatts (GW) of solar and 6 GW of wind capacity were installed during the year, bringing total renewable additions to nearly 57 GW. This marks a 12% year-on-year increase, reflecting the country’s aggressive push toward clean energy. India’s renewable energy targets remain ambitious, with a goal of achieving 786 GW of installed capacity by FY36. This includes existing infrastructure such as large hydroelectric projects and other non-fossil fuel sources, which currently stand at around 225–230 GW. Kishore argued that the nation has a long growth trajectory ahead, supported by favorable policy frameworks and increasing energy demand. However, he cautioned that investors should approach the power sector with a balanced perspective.#renewable_energy #india #us_iran_conflict #axis_capital #sumit_kishore
