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Our Bureau

Mumbai, Oct. 4 Reliance Natural Resources Ltd, Tata Power, Reliance Energy, NTPC, GVK Power Infrastructure etc have all joined the stock market rally since the past couple of days, thus giving a cue to the others in the sector to follow.

NTPC was at an all time high yesterday at Rs 228.90 and has gained 16.76 per cent since a week, whereas Reliance Energy has gained 32.28 per cent since a week and RNRL has gained 7.44 per cent since a week and rallied with jet speed as it has gained almost 90 per cent since a month.

The trigger point for the power sector towards the upward rally has come in the form of upcoming IPOs, feel analysts.

“Uptil now it was the technology sector which was a favourite amongst investors but now with the rupee appreciation the favour has turned towards the power sector leading the funds to flow in this sector”, said Ms Anita Gandhi, Head of Institutional Business, Arihant Capital Markets.

The Reliance Energy IPO, which is expected to be one of the biggest, and the PowerGrid IPO have brought in a positive sentiment and outlook towards the power sector, the stocks of which were underperforming for a long while, says an analyst with a brokerage firm based in Mumbai.

The PowerGrid is listing its shares on the bourses on Friday.

The IPO got subscribed 64 times and brought in subscriptions worth Rs 1,90,000 crore and worth over Rs 1,20,000 crore in overseas subscription. Power is a key sector for the growth of an economy and as there is huge gap between demand and supply, the growth prospects seem strong, said an analyst.

The Government has gone in for power sector improvement as earlier they were not accepting many bids but now there seems to be substantial volumes in this case, feels an analyst.

“Currently the power capacities and book order positions look strong and the business models are sustainable which gives a promising scenario for the power sector,” added Ms Gandhi.

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