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Shares of Indian power financing firms climbed between 2% and 3% today after Morgan Stanley initiated coverage with an “overweight” rating, citing strong fundamentals and macro tailwinds.
Key highlights:
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Morgan Stanley’s bullish stance reflects confidence in India’s infrastructureled growth and energy transition
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Power Finance Corporation (PFC) and REC Ltd led the rally, buoyed by expectations of robust loan growth and stable asset quality
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The brokerage emphasized India’s low beta profile and superior earnings visibility in the financial sector
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Analysts noted that power financiers are wellpositioned to benefit from rising capex in transmission and renewable energy projects
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The move aligns with Morgan Stanley’s broader upgrade of India as its top overweight market in Asia
Strategic context:
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India’s push for clean energy and grid modernization is driving demand for longtenure project financing
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Domestic investor flows and improving fiscal metrics add to sector resilience
Sources: NDTV Profit, Financial Express, Inventiva, Morgan Stanley, Reuters, PTI
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