Power stocks are in focus due to the increasing demand which has picked up in the second half of this fiscal with the easing of lockdown measures, said Rahul Sharma, Co-founder, Equity99.
“Growing urban population and its quest for affordable, clean, and reliable power provide a huge scope for continued growth in power demand,” he added.
Other related counters like Inox Wind, Urja Global, Suzlon Energy, ABB Power Products and Systems India, Honda India Power Products, MSTC, Borosil Renewables rallied as much as 16 per cent during trade.
Amid reports about shortage of coal in various states, the government has assured of adequate coal supply.
“The supply of coal to companies has resumed with Coal India gearing up to replenish stocks of power producers. This has cast aside the gloom and fuelled the rally,” said Gaurav Garg, Head of Research, CapitalVia Global Research.
Analysts said the power crisis is temporary and the sector is likely to bounce back.
“The demand for electricity is expected to grow,” said Garg. “The domestic power sector has seen a robust investment the last 6 years. India is expected to increase its renewable energy capacity by 10 per cent in 2021.”
Garg recommends buying Tata Power and Torrent Power from the sector. “Tata Power’s shift from a traditional utility to a company could be a game changer, whereas Torrent Power is the most preferred stock among private utilities.”
“We are bullish on this sector and expect the rally to sustain further with a revival in economic activities,” said Sharma. He has picked Coal India, PFC and Tata Power as his trading bets.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
