India’s growing energy demand makes the power sector a potential investment theme. But be mindful of the market dynamics before committing your monies.
The sector, dominated by India’s state-owned companies, has been an investor darling due to the country’s rapidly growing energy consumption, with the South Asian nation projected to be the leading driver of global demand through 2030.
In a recent report, analysts at Jefferies said opportunities in the power segment could come through increased capex and higher merchant prices for power due to the onset of summer. Over the past three months, the BSE utilities index has gained around 8 percent
The S&P 500 energy sector is up 4.2 percent year-to-date, slightly lagging the rise for the broader index. The sector logged a 59 percent jump in 2022, an otherwise brutal year for stocks that saw the S&P 500 drop 19.4 percent
The materials sector added 1.3% to hit an all-time high, while the energy index jumped to a more than one-year peak after a cyber attack on top U.S. pipeline operator Colonial Pipeline shuttered a fuel network that transports nearly half of the East Coast's supplies, lifting oil prices.
The performance of Indian stock market should be looked at not just in isolation but also in the context of how emerging markets are doing, said Anup Maheshwari, Executive Vice President of DSP BlackRock Investment.
According to Sudarshan Sukhani of s2analytics.com, the correction in pharmaceutical stocks would be an opportunity.
According to Ajay Jain, CEO at astromoneyguru.com, one may see positive movement in energy stocks.
China's stock markets bucked broad cautiousness in Asian equities with major indices up between 2 and 4 percent, while European trading got off to a subdued start as mining and energy stocks pulled the pan-European FTSEurofirst 300 equity index down 0.2 percent.
The benchmark S&P 500's energy sector was dragged down by the biggest slide in oil prices since April after traders were surprised by a report that showed US crude stockpiles rose for the first time in more than two months.
The market was also spooked by domestic media reports that state-owned Central Huijin Investment Ltd has been slashing holdings in exchange-traded funds tracking main indexes.
Tithankar Patnaik, Director - Institutional Research at Religare Capital Markets has a neutral view on the metals and mining sector but recommends investors to avoid taking positions in stocks like JSPL for now.
Deven Choksey, managing director of KR Choksey Shares & Securities told CNBC-TV18 that election results are less likely to affect to the market unless they are extremely negative.
The US dollar rose on Tuesday on speculation the Federal Reserve might curtail a program aimed at keeping interest rates low, while turmoil in Libya lifted energy stocks and oil prices.
Talking about the sector specific stocks in an interview on CNBC-TV18, Sanjeev Prasad executive director and co-head at Kotak Institutional Equities, Securities said that banking, energy and IT sector stocks are expected to do well.
Asian shares rose on Monday as financial shares clawed back some of last week's losses and higher oil prices buoyed energy stocks, but gains were capped by fears of further outflows from emerging equities to developed markets.
Goldman Sachs Group Inc is partially pulling back the curtain on a balance sheet some have criticized as opaque, but the change is unlikely to provide all the answers some investors want.