Power Capex Stocks Plunge Amid Global AI Caution
Power equipment and infrastructure stocks including GE Vernova, CG Power, and Hitachi Energy fell up to 16% over two trading sessions as global concerns over artificial intelligence development weighed on sentiment. The sharp declines reversed gains these stocks had accumulated in 2026 on expectations of surging power demand from India's data centre expansion.
Power sector capital expenditure stocks experienced significant volatility in recent sessions, with shares falling sharply amid shifting market dynamics. According to reports, GE Vernova T&D India, CG Power, Hitachi Energy, and TD Power Systems declined up to 16% over a two-day period. The downturn reflected broader caution surrounding artificial intelligence development and its implications for future infrastructure needs.
These stocks had performed strongly through 2026, driven by expectations that India's emerging data centre sector would require substantial additional power capacity and infrastructure investment. The recent rally had positioned these companies as beneficiaries of the country's digital growth. However, the announcement of the sharp declines suggests investors are reassessing demand assumptions in light of evolving global AI-related uncertainties.
The sector's sensitivity to sentiment shifts highlights the dependency of power capex companies on confident demand forecasts. When growth narratives shift—whether due to macroeconomic concerns, technological uncertainty, or changing infrastructure timelines—these stocks can experience volatile repricing as investors recalculate future revenue and earnings potential. The power infrastructure sector remains cyclical and vulnerable to confidence swings, particularly when dependent on transformative technology trends like data centre proliferation. Market participants tracking India's power sector should monitor whether this pullback represents a temporary correction or signals more fundamental reassessment of data centre build-out timelines and power demand acceleration in the country.
Source: Markets-Economic Times
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