Adani Power surpassed IT major Infosys in terms of market capitalisation (m-cap) on Wednesday, 27 May, to emerge as the 11th most-valuable Indian company amid a sharp rally in the power stock.
‘s market cap rose to over ₹4.80 lakh crore as against ₹4.71 lakh crore in the previous trading session, following a 3% rise in the stock to a fresh peak of ₹252.60. Meanwhile, a decline in pulled its market cap from near ₹4.73 lakh crore a day ago to ₹4.68 lakh crore currently.
What’s driving Adani Power stock?
Adani group’s most valuable stock has seen a strong interest from investors this year amid rising power demand during the peak summer season, which has driven its stock 66% higher for the year so far and 125.51% in the last one year.
India’s peak power demand hit a record high of 270.82 GW last week as the prevailing heat wave increased the use of cooling devices like air conditioners and desert coolers. The power ministry had earlier projected that the peak power demand would reach 270 GW this summer.
The power demand has been hitting record highs amid soaring mercury. Meanwhile, the Indian Meteorological Department (IMD) has forecast the continuation of the heat wave in many parts of the country, with temperatures slated to hover around 45 degrees Celsius.
The country’s peak power demand has risen in line with rising temperatures from April onwards, intensifying further in May.
Experts said demand and consumption of electricity may rise further due to the continued heat wave, which has swept the entire nation and caused the frequent use of air conditioners, air coolers, and other appliances by consumers, thus benefiting power companies like Adani Power and driving investor interest in the counter.
Adani Power is India’s largest private thermal power producer. It operated 18.15 GW capacity and generated 105 BU in FY26. The company targets 42 GW capacity by FY32, supported by major projects such as Korba Phase-II and Mahan Phase-II, while also expanding into hydro through a 570 MW Bhutan project. Prabhudas Lilladher, in its latest report, named .
Infosys languishes amid AI fears
On the other hand, a sharp drawdown in Infosys shares has made it among the worst-performing index stocks in 2026. Fears of AI-led disruption for the labour-intensive IT services sector, slowdown in discretionary spending, global headwinds like the tariff wars and H1B visa fee hikes have weighed heavily on IT stocks this year.
Infosys has lost 29% on a year-to-date (YTD) basis and 26% for the year.
Kotak Institutional Equities (KIE) said following the Q4 results announcement by Infosys, which was below expectations in terms of revenue and guidance, that the stock remains vulnerable to GenAI disruptions given its incumbent status. “Healthy AI capabilities and domain expertise, strong client relationships and experience of navigating technology cycles will ensure growth similar to the industry. Valuations are cheap and attractive,” it added.
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