It is interesting that all three companies have been in the electricity business. I would definitely caution against getting too aggressive around high levels, given the fact that the 10-year bond yields, the flows of the dollar index, are not supporting a very significant upside in the short run.Īdani Enterprises, Adani Green and Adani Transmission will be considering funds. I am not too bullish on the index from a short-term perspective, even the overhang of the quarterly numbers and the flows that we are looking at but yes, one should really do a little bit of more ground work and try to identify the names where you will see a positive surprise across sectors – be it IT, be it metals, be it the consumer names, cement, etc. We are back to almost the high level that we had seen about two-three months back and we have a very important quarterly earning season around the corner, where because of the dynamics around the input cost and interest rate flows, it is not going to be an easy quarter for many of the companies. With what is happening around the dollar index, how do you trade that in the equity markets and what would be the themes? The last time it was 100 on our screen was on 18th May 2020. The other newsmaker of the day is going to turn out to be the dollar index which is now flirting with 100. Though there is an appetite we should be a little more selective about what we are getting into from a trading perspective or even from a long-term perspective. Zomato also had its own sort of challenges given the kind of allocation of capital that they have done in some investments they have announced. From 52-week lows,Īlso, let us say you have Paytm where I do not think there is a case for a significant up move given the kind of challenges that we have. What about the new-age companies? You are talking about the value stocks coming back, electricity stocks coming back, but so have the new-age companies. These are the best stocks to have –particularly Tata Power, NTPC and Power Grid. We like that space and we do think that despite the kind of runup that we have seen in some names, they do offer some more upside, particularly for retail investors who are looking for a 10-15% move. Also, it is a very small sector in the overall scheme of things and the allocation at the institution level would be very small. Some of these utility companies, particularly Tata Power, NTPC and Power Grid could be beneficiaries of that, which is why we are seeing this move. The entire utility space is seeing renewed interest and primarily it is because there is an expectation that both from the company side as well as from the government side, there will be a lot of push and incentives on the alternate energy front – be it solar power or green energy and the entire ecosystem around it.

What do you believe are some of the key triggers that are driving this up move in the power stocks? Is there any stock within this space that you would be flagging off?

Power Grid,' says Hemang Jani, Equity Strategist & Senior Group VP, Motilal Oswal Financial Services Ltd.

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