The power index which was launched on the muhurat trading on November 9, 2007 by the Bombay stock exchange (BSE) constituting 14 upcoming companies in the power sector gave a return of 3.11% in the last one month since its inception while the benchmark Sensex constituting of 30 blue chip companies gave a return of 7.32%. The BSE power index is presently trading at 4,523.55 points where as the Sensex is trading at 20,290.89 points.
The three heavy weight stocks Reliance Energy Ltd (REL), BHEL and NTPC Ltd of the Sensex basket whichcontribute to 7.68% of thetotal weight in the Sensex showed some disparity asfar as returns in thelast one month are concern-ed. While REL gave a return of 5.87%, NTPC Ltd could manage to give a miniscule return of 0.7% and BHEL gave a negative return of 3.7%. Of the other 11 companies in the BSE Power index, nine stocks companies gave positive returns while two companies gave diminishing return in the range of 5 to 6%. Among the gainers GVK power and infrastructure Ltd led the way giving a return of 17.69 % in the last one month followed by GMR infrastructure which managed to give a return of 16.27%.Kuljit Singh, partner, E&Y said, ?The companies in the power sector are totally dependent on future projects and the completion of these projects in turn depends upon the demand and supply of power in the country.?
