GREAT TIME TO INVEST IN SPECIFIC INDIAN STOCKS
Power sector
Looking at BSE Power index over a period of five years the previous government hasn't made this as a profitable proposition for private players to create a business friendly sector. It includes delays in coal blocks allocation, delays in environmental approval and so on so forth. The PSU's doing the power distribution and production were paralysed because of huge wage cost for the employees and bad environment to operate efficiently and effectively.
Looking at the overall scenario if these underlying issues can be taken care of with good governance and effective implementation of power sector reforms, the current valuation of various stocks like NTPC, TATA POWER, SJVN( particularly) and RELIANCE INFRA can easily given an aggregate return of 15-18 percent over the longer term period.
Power sector
Looking at BSE Power index over a period of five years the previous government hasn't made this as a profitable proposition for private players to create a business friendly sector. It includes delays in coal blocks allocation, delays in environmental approval and so on so forth. The PSU's doing the power distribution and production were paralysed because of huge wage cost for the employees and bad environment to operate efficiently and effectively.
Looking at the overall scenario if these underlying issues can be taken care of with good governance and effective implementation of power sector reforms, the current valuation of various stocks like NTPC, TATA POWER, SJVN( particularly) and RELIANCE INFRA can easily given an aggregate return of 15-18 percent over the longer term period.
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