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Saturday, 10 March 2012

Insight Technical's Latest report on Power Sector

After August 2011, the market is back to 18k level with strong 
upswing movement.  Factoring the firm global cues with high inflow
of investors in market, Sensex is expected to continue this upward rally.
As per research, power sector is a lucrative stream to invest with a long

term view.With Government of India working to boost power sector, 
Coal India will sign by March end agreements for supply of fuel to 
power projects commissioned up to December 2011.The Government 
has forced SEB’s to increase power tariff by 25-30%.This step of Govt
has provided huge relief to companies in power generation companies.
According to sources,there may be another price hike of 20-25% within
a period of 2 years.For the 12th plan, Power companies capital expenditure
is expected to be around Rs.100, 000-120,000 crore in which about 52,000 km of
transmission lines,70 sub-stations and transmission capacity of1,36,000 MVA.

The Government of India being  keen on infrastructural development for economic
development, power is the leading sector to be further developed.Going by the recent 
development, we expect Powergrid, NHPC, REC, Neyveli Lignite to report healthy
set of results on the backof higher capitalization and higher capacity addition. We 
expect an average post of 20-25% increase in revenue and profit Y-o-Y.
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