Sanjiv Bhasin of IIFL told CNBC-TV18, "We have had a mixed view on power and we thought that power rates had actually bottomed out and power assets became extremely cheap. So, whether it is Jindal Steel & Power which becomes a part of the power part and the steel side and JSW Energy or even an NTPC, we think merchant power rates are definitely going to expand and that could be slightly inflationary given that coal prices and demand because of the monsoon are also seeing a huge uptick."
"So, we have two picks over there. As a value pick Reliance Power at Rs 40 has a book value of Rs 80. We think the risk reward here given that the debt equity in the power space is the lowest becomes very attractive for one and half year view of Rs 70," he said.
"Power Grid on the distribution side and NTPC are three of our picks," he added.
"We also are overweight on Coal India close to Rs 240 where we think the wage hikes and the price rises are already priced in."
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