**Power Grid Market Brief: Bullish Momentum on Capex Upgrade** **Price Action & Market Sentiment** Power Grid Corporation shares have surged over **12-13%** in a robust two-day rally as of early February 2026. The stock recently hit an intraday high of **₹282.25**, breaking past key resistance levels. Trading volumes have spiked significantly—rising nearly **37%** above the five-day average—signaling strong institutional accumulation and renewed investor confidence. **Guidance Upgrade Fuels Rally** The primary driver of this uptrend is a sharp upward revision in the company’s capital expenditure targets. Management raised the FY26 capex guidance to **₹32,000 crore** (up from ₹28,000 crore) and increased the asset capitalization target to **₹22,000 crore**. This aggressive expansion plan aligns with India's accelerated push for renewable energy transmission and grid modernization. **Q3 FY26 Earnings Strength** Fundamental support comes from solid third-quarter results. The state-owned utility reported an **8% YoY increase** in consolidated Net Profit (PAT) to **₹4,185 crore**. Revenue from operations climbed **10%** to approximately **₹12,400 crore**, driven by higher transmission income and improved operational efficiency. The Board also declared a second interim dividend of **₹3.25 per share**, maintaining its reputation as a consistent dividend payer. **Sectoral & Government Support** Budget 2026 proposals have further improved the outlook. The government has earmarked higher investment targets for the power sector, with Power Grid’s specific investment target for the next fiscal year (FY27) projected to rise to **₹37,000 crore**. These funds are strategically allocated for green energy corridors and evacuation infrastructure for renewable projects, ensuring long-term order book visibility. **Technical Outlook** Technicals indicate a clear bullish reversal. The stock is now trading comfortably above its **5-day, 20-day, and 50-day moving averages**. The Relative Strength Index (RSI) hovers around **60**, suggesting strong momentum with room for further upside before reaching overbought territory. Heavy activity in call options suggests traders are positioning for continued gains in the near term. **Key Takeaway** Power Grid is currently in a sweet spot, backed by a **14% hike** in capex guidance, strong earnings growth, and favourable government policy. The alignment of fundamental upgrades with technical breakouts makes it a key stock to watch in the utilities space. I can set up a price alert for Power Grid or generate a comparison with other power sector peers if you need further analysis.