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


Updated: July 10, 2025 11:20

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

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