Sanjay Sinha, Founder, Citrus Advisors advice investors to buy power stocks.
Sinha told CNBC-TV18, "I would buy power stocks as a subset of the entire infrastructure space not necessarily just because of this particular event as a factor. There are few challenges for the power sector in India and the fuel supply agreement with Coal India may not necessarily address the entire need for resources that they have. Till the time they actually tie-up their contracts with not only Coal India but with some of the global suppliers also the issue will not be fully addressed."
He further added, "I am also slightly optimistic on the resources front also because in a year in which the global economy is slowing down I would expect that the mineral resources, prices also may not be the same hike as what they have seen in 2010-2011. Therefore, access to resources at more affordable prices may still be available to the power companies."
