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Power stocks tumble on funds selling - The Hindu Business Line

Power stocks such as NTPC, Tata Power, Reliance Infrastructure (formerly Reliance Energy), Reliance Power, CESC, Torrent Power and PowerGrid Corporation have been facing the brunt of selling pressure in recent times. Other power equipment companies’ stocks have not been spared either as ABB, Areva, Crompton Greaves, BHEL and Siemens have also witnessed sharp declines.
According to market participants, the power sector has fallen out of favour among institutional investors, particularly FIIs (including hedge funds) who are now offloading these stocks since the chances of the India-US nuclear deal getting through now appear rather remote, following the Congress debacle in Karnataka election. According to market participants, many institutions, which had picked up stake in these companies a couple of years ago betting that the nuclear deal could trigger new business opportunities for them, are now offloading these stocks.
Rising coal prices, a key raw material for the thermal-based power companies has also affected the sentiment for these stocks. Coal prices have jumped over 30 per cent in the last few months.
Reliance Infrastructure was the worst performer as the stock tumbled by 26 per cent in the past month. Other losers were NTPC that crashed 20 per cent, Torrent Power 20.5 per cent, JP Hydro 18.5 per cent and PowerGrid Corporation 14 per cent.

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