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I am of the opinion that bullish sentiment in power stocks will keep on going thanks to the reforms process the government has initiated in the sector. Awaiting action there are some clear signs of a further push from the government sops yet to come, the sector could be a market performer.
Owing to the short fall of power in the country, the government has streamlined an action plan till the year 2012’this sets some milestones to be crossed over the next decade. This exercise includes: additional electrification of 62,000 villages by 2007 and 18,000 remote villages by 2012 and complete electrification of all households.
As well, firm targets have also been set on the size of the industry. The important ones are an addition of 100,000MW with an investment requirement of Rs 4,000 billion, development of a National Grid
Power sector companies have got a clear boost from the budget since the Government has decided to give support of Rs11bn in FY06 for the rural distribution strength Also that every village should have at least one distribution The power sector has a lot of positive factors building up for it but to reiterate a lot will depend on the pace and implementation of the initiatives.
Stocks that stand to benefit
1. NTPC
2. Neyveli Lignite
3. NTPC
4. Suzlon Energy Ltd
NRI investors should watch for the action in this sector with a long term investment perspective.
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1. Written by
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, on 21-06-2007 23:59
I would llike to know if Hero Honda is a buy or sell and what will be the bottom or top for this stock. Any additional information is well come.
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