24 May , 2022 By : Kanchan Joshi
India recently faced a power cut with a peak power deficit of 10.29 GW, economy like India requires a continuous power supply to keep its growth in momentum. Electricity, one of the key economic indicators contributes to about 2.5-2.7% to GDP .
“This overall power shortage will impact the GDP by about1-1.5%, the reason for this shortage is due to uncertainty in the geopolitical tension in Russia-Ukraine, heat waves across the country, and coal supply issues," said Manoj Dalmia, Founder and Director, Proficient equities Private limited
Such power crisis are to increase the cost of production and lowering margins for manufacturing companies as a result of which Indian markets might decline, he added.
As we can see, due to the high rise in temperature as well as in industrial output, power demand is increasing. “However, aside from renewable plants, no significant investment has been made in traditional power plants. This is also having an effect. High energy basket prices are also having an effect. We believe that this gap will last at least 3 to 6 months," said Ravi Singhal, Vice Chairman, GCL securities Limited
Top stock picks as advised by Ravi Singhal are Tata power and NTPC.
The Indian stock markets key indices, Sensex and Nifty, closed in the red in a volatile session on Monday after the government announced a slew of fiscal measures on the weekend to ease inflationary pressure.
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