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Power Stock Gained: Will it Last Long ?

News:

Major stocks in the power sector have opened their day on a positive note. Bharat Heavy Electricals (Bhel) (up 0.65%), Crompton Greaves (up 0.97%), L&T (up 1.06%), Thermax (up 0.19%), and Siemens (up 2.38%) gained.

Source: Business Standard

SNP Insight:

The opening of the power stock at positive sentiment may be due to the government announcement of INR 50 Billion scheme for solar and asking industrialist to increase there risk taking appetite and bolster the investment. But this sentiment is not likely to last long due to poor reform of the policies and low demand of power (weak financial health of discoms) which is impacting the offtake of power sale.

Source: SNP Infra Research