NTPC, Tata Power: Power sector stocks rally makes analysts cautious

The sharp rally in power sector stocks over the past few weeks has made analysts cautious on this space, who suggest fresh investment in these counters be made from a two-three year horizon. In the past one month, the S&P BSE Power Index has gained over 6 per cent, outperforming the S&P BSE Sensex that has moved up around 1 per cent. Tata Power, NTPC, Indian Energy Exchange and Power Grid Corporation of India have moved up 9 per cent to 22 per cent during this period, ACE Equity data show.

“One cannot paint the entire sector with the same