Power is the driving force behind India's new economic growth. And this new development is definitely a boost for the power sector. However, it is not just the power stocks but a handful of other stocks as well that would gain from this deal.
Rajesh Jain of Pranav Securities and technical analyst Sudarshan Sukhani discuss stocks and sectors that are likely to rise as a result of the Indo-US nuclear deal.
Sukahani says that the chart of NTPC is almost perfect. "That stock is making new highs and is doing very well. It comes up and goes through a correction, which means that it lightens up its positions and then goes up again. That's almost a sort of perfect chart."
While Sukhani discloses that he owns NTPC shares, he also advises traders and investors to invest at current levels. "I would feel that it's a buying opportunity for traders and investors even at current levels. Now obviously one has to do ones own analysis, but that's my opinion. I must say that I also own NTPC shares."
The sentiment is positive for NTPC for sure, meanwhile experts opine that some stocks will benefit more than others.
Stocks like Hindustan Construction, Rolta, Bharat Electronics etc maybe even L&T and BHEL stand to gain from this deal, as these construction companies have major power projects on their order books.
When questioned on NTPC, Bharat Electronics, Hindustan Construction, Rajesh Jain says that these are definitely good stocks to be in. He says, "These companies have significant technical competences in the areas in which they operate. My personal view is aside of the US Indo-nuclear deal, there is a huge market waiting for these companies overseas."
"India has sizeable competencies in nuclear engineering and all these companies will benefit," Jain adds.
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