Shell (Shell (SHEL)) is selling its Indian renewable energy business to the Aditya Birla Group for $1.8 billion. The deal, announced Monday, involves Shell's subsidiary Shell Overseas Investment B.V. selling 100% of Solenergi Power Private Limited, which includes the Sprng Energy group of companies, to Aditya Birla Renewables Limited (ABRen).

The transaction covers Sprng Energy's operating assets, commercial contracts, and its entire renewable energy portfolio. It's expected to close by the end of 2026, pending regulatory approvals and customary adjustments for net debt and capital expenditures.

Portfolio Reshaping

"This agreement reflects Shell's continued focus on adjusting the portfolio in our power business," said Machteld de Haan, president of downstream, renewables and energy solutions at Shell. "We are high-grading our power portfolio and recycling capital in service of our asset-backed trading strategy outlined in Capital Markets Day 2025. This is another step in building a more focused, competitive and resilient business while improving returns year on year towards 2030."

The sale is part of Shell's strategy laid out at its March 2025 Capital Markets Day. The company is reshaping its power portfolio by prioritizing asset-backed trading, flexible generation, and disciplined project execution, with a goal of delivering about 10% return on average capital employed by 2030.

Sprng Energy Portfolio

Sprng Energy supplies solar and wind power to electricity distribution companies across India. Its portfolio totals 5.0 gigawatts-peak, including 3.3 GWp of operating assets and 1.7 GWp of contracted capacity. Shell said all Sprng Energy employees will continue with the new owner, ensuring workforce continuity and operational reliability.

India remains a key market for Shell, where it operates an integrated liquefied natural gas value chain, along with mobility and lubricants businesses. Shell recently expanded its lubricants business through the acquisition of Raj Petro Specialities.

ABRen is the Aditya Birla Group's renewable energy platform, backed by Global Infrastructure Partners, part of BlackRock, as a strategic investor. The company develops and operates solar, wind, hybrid, floating solar and battery storage projects across India.

Shell Stock Performance

Shell stock rose about 2% on Monday as investors rotated into energy stocks while pulling back from growth-oriented sectors. The Energy sector gained 3.2%, making it the top-performing group in the S&P 500, even as the broader market weakened. The Nasdaq fell 1.81%, while the S&P 500 lost 0.74%.

Positive market breadth also supported the move, with seven of the 11 S&P sectors trading higher. Investors favored defensive and commodity-linked companies as technology stocks came under pressure. Shell's advance appears to be driven primarily by sector strength rather than company-specific news. Technology stocks fell 2.46%, while the Russell 2000 declined 0.97%, signaling a rotation into energy and other defensive sectors.

The stock is also recovering after a volatile stretch. Improving sector sentiment has helped lift integrated oil producers as investors seek exposure to companies that can benefit from stronger commodity prices. Although Shell gained about 2%, it slightly lagged the Energy sector's 3.2% advance.

Technical Picture Improves

Shell is trading 5.1% above both its 20-day simple moving average of $79.98 and its 200-day simple moving average of $80.01. That suggests the longer-term uptrend remains intact. However, the stock is still 2.2% below its 100-day simple moving average of $85.98, while the 20-day average remains below the 50-day average. That indicates the intermediate-term trend has not fully recovered.

Momentum is improving. The MACD remains above its signal line, and the positive histogram suggests buying pressure is strengthening. Traders may now watch resistance near $88.50. Initial support sits around $83.50, close to the 50-day moving average and 50-day exponential moving average.

Shell Price Action

SHEL Price Action: Shell shares were up 1.98% at $83.85 at the time of publication on Monday, according to market data.