The Hindu Business Line : Investors rush for power stocks

Mumbai, Sept. 8 NSG clearance to India to pursue nuclear commerce with nuclear fuel and technology-rich nations led investors to rush for power company stocks on Monday.

According to a research report brought out by Associated Chambers of Commerce and Industry of India (Assocham), India’s nuclear power projects had the potential of attracting investments worth Rs 2 lakh crore in 15 years.

The report said 40 Indian companies have started negotiations with the Government and their foreign counterparts for nuclear power generation.

Power producing and equipment manufacturing companies’ stocks moved up soon after the market opened in the morning.

The BSE Power index closed 3.36 per cent up. The index gained more than five per cent in the morning session but gave up part of the gains on profit booking during the closing session.

Public sector company Power Grid gained maximum of 5.11 per cent. The company stands to gain from the establishment of nuclear plant as a monopoly player in long-distance power transmission and distribution.

The largest PSU power producing company, NTPC, gained 4.58 per cent.

Among the private sector companies, Reliance Infrastructure gained 4.19 per cent. Reliance Power (3.71 per cent), GVK Power (3.06 per cent), Tata Power (1.90 per cent) and GMR Infrastructure (1.80 per cent) were among the other winners.

Shares of power equipment manufacturers also gained: BHEL (3.40 per cent), ABB (2.40 per cent) and Crompton (3.38 per cent).

“The weekend development has certainly been positive for the markets. But as far as the nuclear deal is concerned, now it has been priced in with today’s gains, the developments henceforth that are going to be taken note of by the market will happen only in the next two to three years,” said Mr Apurva Shah, Head of Research, Prabhudas Liladhar.

More Stories on : Stock Markets | Power

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