Friday 7 November 2008

Power stocks rally as low valuations attract investors

Power stocks, which were battered badly in the last one month, rallied on Friday as low valuations attracted non-institutional buyers in
the last hour of the session. However, foreign institutional investors continued to keep away.

The power index of Bombay Stock Exchange was the top sectoral gainer, surging 4.5 per cent to close at 1,777.57.

Suzlon Energy topped the list with a gain of nearly 18 per cent at Rs 70.70, followed by Neyveli Lignite (up 12% at Rs 169), Reliance Infrastructure (10.92% at Rs 561), GMR Infrastructure and Torrent Power surged nearly 8.5 per cent, Power Grid rose 7.5 per cent, Reliance Power up 6.3 per cent and NTPC advanced nearly 5 per cent.

“Shares in power sector mostly rallied on account of lower valuation as they were pushed at the lowest during the past much meltdown. Now, people have started nibbling at the lower levels and on the other side retail investors have shown their interest in buying,” said a senior industry analyst of Angel Broking.

Further, the power sector has a positive outlook despite unfavourable global financial cues, as majority of companies have already raised cash and their order book is also strong, he added.

Source: EconomicTimes

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