Why Is Morgan Stanley Betting Big on Power Finance? The 3% Clue Is in the Charts

Image Source: CNBC TV18

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:

Morgan Stanley’s bullish stance reflects confidence in India’s infrastructureled growth and energy transition
Power Finance Corporation (PFC) and REC Ltd led the rally, buoyed by expectations of robust loan growth and stable asset quality
The brokerage emphasized India’s low beta profile and superior earnings visibility in the financial sector
Analysts noted that power financiers are wellpositioned to benefit from rising capex in transmission and renewable energy projects
The move aligns with Morgan Stanley’s broader upgrade of India as its top overweight market in Asia

Strategic context:

India’s push for clean energy and grid modernization is driving demand for longtenure project financing
Domestic investor flows and improving fiscal metrics add to sector resilience

Sources: NDTV Profit, Financial Express, Inventiva, Morgan Stanley, Reuters, PTI