Energy stocks to keep an eye on after Morgan Stanley expects India to invest $550 Bil in the sector – EQ
In Short : Given Morgan Stanley’s expectation of India investing $550 billion in the energy sector, certain energy stocks may become noteworthy. Investors may want to keep an eye on companies involved in renewable energy, traditional energy sources, and related infrastructure. Key sectors to monitor could include solar and wind energy, power transmission, and utilities, among others. It’s essential to conduct thorough research and consider factors such as financial performance, market trends, and regulatory developments before making investment decisions.
In Detail : Morgan Stanley estimates that India will invest over $550 billion in energy security over the next decade, emphasizing the country’s focus on energy security amid the ongoing momentum in energy transition.
Currently, India is undergoing a phase of energy transition where power demand is on the rise. However, concerns about the supply are becoming increasingly complicated.
Morgan Stanley forecasts a compound annual growth rate (CAGR) of 7.4% for Indian power demand from FY24 to FY32. The brokerage anticipates a worsening supply situation due to delays in coal- and hydro-based plants and lower-than-expected additions to renewable capacity.
Based on this factor Morgan Stanley gave overweight, underweight and Equal weight ratings in power utility sector stocks.
