Investors still jittery on power sector
Power shares underperformed during the recent rally in Indian shares and may continue to do so even going ahead as investors continue to be jittery of betting on the sector despite a slew of reforms announced for the beleaguered sector, experts tracking the sector said.
BSE’s benchmark index soared 10% in the past six sessions on strong inflows from foreign investors driven by positive global cues and expectations that the government may announce measure to improve its finances and boost the economy. But power shares continued to be laggards, weighed by concerns over the sector’s health.
“Power sector has gone through difficult times in the last two and a half years. Health of power discoms is improving but remains fragile, and reforms would take time to yield result. While recent steps initiated by ministry of power and Cabinet Committee on Economic Affairs have been positive, Investors are now waiting for results to show,” said Sachin Mehta, research analyst, Centrum Broking.
ET Intelligence Group (ETIG), the research arm of The Economic Times, data reveals that while most shares clocked robust recovery on bourses, shares of power utilities saw lukewarm upside. ETIG’s Power Index, that constitutes 10 power companies, rose only 6% in the past five sessions.