Explained: Why SJVN shares gained over 6% today

SJVN Ltd shares surged over 6% in today’s trading session after the power generation company announced it had signed two significant agreements with the Maharashtra government.
These memorandums of understanding (MoUs) aim to develop Pumped Storage Projects (PSPs) and Floating Solar Projects (FSPs) in the state, with a total investment of Rs 48,000 crore. The projects are expected to create around 8,400 direct and indirect jobs.
The stock rose 6.03% to Rs 133.60 on the Bombay Stock Exchange (BSE), with a market capitalisation of Rs 52,520 crore.
Technically, its relative strength index (RSI) stands at 36.2, indicating that the stock is neither overbought nor oversold. It’s currently trading above its 5, 10, 20, 30, 150, and 200-day moving averages but remains below its 50 and 100-day averages.
The stock has been a strong performer, delivering a 319% gain over the past two years and a 90% rise in the last year. Over five years, it has increased by 441%.
The first MoU was signed between SJVN and Maharashtra’s Department of Water Resources to develop five Pumped Storage Projects with a combined capacity of 8,100 MW.
The second MoU was inked with the Maharashtra State Power Generation Company (MAHAGENCO) to develop a 505 MW Floating Solar Project at the Lower Wardha Dam.
SJVN Limited operates in the power generation sector, providing electricity through hydro, wind, and solar sources. The company is also involved in consultancy services, power transmission, and trading across various renewable energy sectors.