NTPC (NTPC.NS) shares slump as much as 11.2 percent, their lowest level since October 27, 2008, but Tata Power (TTPW.NS) and Adani Power (ADAN.NS) surge after the electricity regulator's ruling on pricing.
The Central Electricity Regulatory Commission on Sunday allowed Tata Power and Adani to raise tariffs, benefiting the two power producers.
But the impact for NTPC is seen as negative because the regulator has at the same time tightened incentives on capacity utilisation and tax treatments for the state-owned company, according to analysts.
At 10:20 a.m., NTPC shares down 11.1 percent at 117.70 rupees, while Tata Power and Adani Power up 4.3 percent and 0.6 percent at 82.15 rupees and 36.75 rupees, respectively.
Shares of Tata Power(TTPW.NS) surged 6 percent while Adani Power (ADAN.NS) rose 1.6 percent on Monday after the electricity regulator allowed these companies to raise tariffs and receive compensation to make up for losses incurred at their Mundra projects.
Tata Power can raise tariffs by 0.524 rupees per unit for the current fiscal year for electricity generated from Mundra, the regulator said in an order dated February 21.