The market is seen in an attempt to recover the Nifty’s weekly expiry. The Nifty climbed more than 100 points from the lowest levels of the day and trading beyond 22900. Bank Nifty has received a recovery of about 230 points. Midcap and smallcap also have a good rise in the second day. Metal, power and PSUs are getting the most shopping today. The NHPC has become the top gainer of the futures with a rise of about 6 per cent in the energy index. Also, NTPC, CESC and JSW Energy have also risen by 3 to 4 percent. Power stocks are strongly rose today. Power shares are also on the radar of brokerage. Special brokerage reports have come on NHPC and Tata Power. My colleague Yatin Mota is connected to tell
CLSA has upgraded to the NHPC cook and has given a high convention outparform rating. But due to more capex, the target has been reduced from Rs 120 to Rs 117. Brokerage says that the valuation of stock is not expensive after 25 per cent correction. There is a chance to shop in stock. The income will increase by 27 percent from the start of the Parbati 2 Hydro project. The company’s regulated equity can be 2 times during FY24-28. Reguladed equity in the power sector means Roe.
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HSBC has upgraded the rating of Tata Power to Reduce. The target of Tata Power has been increased from 300 to 345 rupees. HSBC is of the opinion that correction has come in the stock for external reasons. Power demand has seen an impact on growth projection from weakness. The power purchase agreement on the stock shows the effect of lethargy. In UP and Rajasthan, the impact of delay in discomity has also been seen. The delay in construction of the pumped storage project has also affected. There is no cleaning on the montage of the part in Tata Sons. Lower coal prices have also been affected. Mundra issue is not to be resolved. All these have been negative factor for stock.
But there are positive news for solar modules and cell manufacturing business ramp-up positive stock. The company has been profitable in the first half. In the third quarter of FY 2025, 17 percent of Ebitda margin has been achieved. The opinion of brokerage about module and cell manufacturing margin is constructive. EPC business is also getting a turnaround which is a good sign.
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