Utility Stocks Surge to Record High as Businesses Reopen
Shares of Indian power companies advanced, driving the S&P BSE Utilities Index up as much as 3.2% to a record high intraday, amid optimism that power consumption will recover as businesses gradually reopen from localized lockdowns
Adani Power Ltd. surged 20%, RattanIndia Power Ltd. 10%, Torrent Power Ltd. 9.4% and Tata Power Ltd. 6.3%
Top power-consuming states Maharashtra, Uttar Pradesh, Gujarat and Tamil Nadu began easing restrictions on business operations from Monday, in light of the slowing pace of new coronavirus cases
“Utilities sector trades at P/B of 1.3x, a 32% discount to its historical average,” Motilal Oswal Financial Services Ltd. wrote in June report