The Hindu Business Line : Select power stocks hog limelight on N-hopes

According to analysts, the Left’s withdrawal of support for the UPA Government and the strong indication that the Government would hasten the process of signing the proposed Indo-US nuclear deal lifted the sentiment for the stocks, which may be benefited from a regime that allows them to participate in nuclear projects here and abroad.

Some of the brokerages issued advisories to buy these stocks for long-term gains. “As seemingly all hurdles are being removed for the country’s entry into the nuclear club in terms of supplies and access to technology, we have advised our clients to start buying into some of the stocks in this space,” said Mr Ajay Jaiswal of Microsec.

Gainers list

Though today’s gainers list was long, Mr Gul Teckchandani, an equity strategist, felt that a few of these stocks, such as Areva, L&T, BHEL, NTPC, ABB and Alstom Projects could be seen as future beneficiaries.

According to Mr Arun Kejriwal of KRIS, the expectations kicked in and stocks have begun to move. However, things may not materialise overnight. “There may be many a slip between the cup and lips,” he added.

According to Mr Amitabh Chakraborty of Religare, the sentiment has turned positive obviously for the long-term.

Many of these stocks provided attractive entry levels, which also prompted a positive response from the market players, said an analyst with a foreign brokerage firm.

Areva TD, which boasts of a French parent, and has decided nuclear power-related capability, moved up to finish with a gain of 5.38 per cent. L&T, which is already involved in setting up a domestic N-power project and is using Mitsubishi boiler technology for Nuclear Power Corporation, would be in a better position to take up project abroad and access more related overseas technologies without hassles.

It finished up 1.5 per cent. BHEL, which has access to a Siemens technology for the nuclear sector and is into equipment supplies to Nuclear Power Corporation, finished up 2.18 per cent. NTPC fetched gain of 3.6 per cent for its foray into nuclear power in 2012-13.

Alstom Project counter shot up over 7 per cent because of its overseas parent being one of the global players in the nuclear power industry.

Some of EPC and engineering installation companies such as Hindustan Contruction, Gammon, Macnally Bharat and Simplex moved up for their reported strength and experience in this field.

IT stocks such as Rolta (for its joint venture with Stone & Wabster) and Mastek (for tie-up with Euriware) also moved up.

Related Stories:
No view yet on pvt sector entry into nuclear power generation

More Stories on : Power | Stocks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page