Will power stocks like Tata Power, NTPC Green and JSW Energy gain amid Iran‑Israel conflict?

Amid ongoing geopolitical tensions and the looming possibility of prolonged conflict in West Asia, investors are advised to focus on specific sectors that are likely to remain resilient, said Zee Business Managing Editor Anil Singhvi.

Singhvi highlighted the power sector as one of the strongest performers in the current environment. "In the ongoing conflict scenario, power sectors will remain strong. The main problem at this time is oil and gas. Historically, during wars, crude oil supply becomes a concern, and the world searches for alternatives," he said.

Power Stocks Set to Benefit

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Singhvi explained that alternatives such as coal, hydro, solar, wind, and nuclear energy have become crucial for countries seeking energy independence. "Now, countries are looking at power generation that they can control themselves. You cannot transport crude oil from everywhere—it comes from where it exists. But you can generate power. This is why the demand for the power sector will remain very strong," he added.

He listed companies such as Tata Power, JSW Energy, BHEL, NTPC, Coal India, NLC, as well as power grid and renewable energy companies, as beneficiaries of this trend. Singhvi also pointed to power equipment manufacturers like ABB, Hitachi Energy, and Cummins for potential gains.

He emphasised that foreign institutional investors (FIIs) are showing consistent interest in these stocks. "Where FIIs are buying, you should stay invested. Where they are selling, you should exit," he advised.

Defence Stocks Better Opportunities

According to Singhvi, the defence sector is another area likely to benefit from global tensions. "The possibility of prolonged wars is evident. Every country has to increase its defence budget. This is the first time Gulf countries are also expanding their budgets. They have money and want advanced weapons. Indian companies are well-positioned to get global business in the defence space," he said.

For individual investors, Singhvi recommended opting for defence-focused mutual funds rather than individual stocks to manage risk. He mentioned HDFC Mutual Fund’s Defence Fund and Motilal Oswal Defence Fund as options that provide a diversified portfolio. "Stocks like Tejas Networks or Mazagon Dock can be volatile. Investing through funds ensures a safer, diversified approach," he said.

Aluminium and Banking Stocks in Focus

Singhvi also highlighted the aluminium sector as an area to watch. "Several aluminium plants are closing temporarily due to oil supply disruptions. Restarting these plants takes four to six months. This gives an advantage to Indian aluminium companies," he explained.

On the banking front, Singhvi noted weakness in some large private banks. "HDFC Bank remained weak for the second consecutive day, forming lower highs and touching one-year lows. ICICI Bank contributed the most to the fall in Nifty and Bank Nifty," he said.

Investment Strategy and FII Trends

Singhvi reiterated that markets move in cycles. "In every rally, stocks rise. In every decline, stocks fall. Strong stocks may fall less, weak stocks may fall more. The trend is clear—power, defence, and aluminium sectors are positioned to outperform," he said.

The market expert also advised investors to monitor FII activity closely. "Where FIIs are active, those stocks are likely to perform better than the market. Power and defence sectors are currently attracting strong institutional interest," he said.

Singhvi emphasised a strategic sector-focused approach for the current market environment. "Power, defence, and aluminium sectors are likely to be strong amid the ongoing geopolitical tensions. Investors should focus on these areas and stay aligned with FII trends for better returns," he said.

Stock Markets Tumble Amid Middle East Tension

The stock market has fallen amid rising tensions in the Middle East. The BSE Sensex, which was at 80,238.85 on March 2, the day the Iran-Israel war began, dropped to 76,034.42 on March 12, a fall of 4,204.43 points or 5.24 per cent.

The Nifty 50 fell from 24,865.70 on March 2 to 23,639.15 on March 12, down 1,226.55 points or 4.93 per cent. In the past five trading sessions, the Sensex lost 3,508.76 points or 4.41 per cent, while the Nifty 50 fell 1,041.90 points or 4.22 per cent.

On a year-to-date basis, the Sensex is down 9,154.18 points or 10.75 per cent, and the Nifty 50 has dropped 2,507.40 points or 9.59 per cent.