Power Grid shares may decline due to bribery scandal

Power Grid Corporation of India Ltd is in the news due to a bribery scandal involving a senior executive. Uday Kumar, a general manager, was arrested by the Central Bureau of Investigation (CBI) for allegedly accepting a bribe of ₹2.5 lakh. This incident has raised concerns among investors and may lead to selling pressure on Power Grid's shares when the market opens on Monday. Despite these challenges, Power Grid recently announced two major project wins in Rajasthan and Karnataka. These projects could help support the company’s stock price. The win in Rajasthan involves the acquisition of Fatehgarh II and Barmer I PS Transmission Limited, focusing on the expansion of existing substations. In Karnataka, Power Grid has acquired Chitradurga Bellary REZ Transmission Limited. This project aims to improve the transmission system in the region, including new substations and upgrades to existing infrastructure. Overall, while the bribery scandal poses a risk to investor confidence, the company's recent project successes may provide some positive momentum. Investors are advised to stay informed and consult experts before making decisions.