Interim Budget 2019 Reaction - Power Sector - Mr. Sabyasachi Majumdar, Senior VP & Group Head - Corporate Ratings, ICRA

Power Sector

Impact : Positive

The higher budgetary allocation in FY 2019-20 on schemes such as DUGJY& IPDS are a positive for distribution utilities, as it would enable them to reduce distribution losses in their license areas. The continued thrust towards ensuring electricity access to all rural households under "Saubhagya" scheme is likely to improve energy demand in the country, which is a positive for generating companies/ IPPs. The budgetary allocation towards renewable energy sector has remained similar in FY 2019-20 and thus provides continued policy support towards meeting funding requirements for the renewable energy segment, including that for building a green energy transmission corridor.

Capital Goods

Impact : Positive

Higher budgetary allocation in schemes namely DUGJY& IPDS, as well as allocation towards the renewable energy sector are a positive for EPC companies, as it would provide a boost to their order inflows. Further, the increased capex by Railways with its thrust to improve the electrification is a positive for EPC companies as well as solar OEMs domestically, given the stated preference by Government entities for meeting requirements from domestic players.

Shares of ICRA LTD. was last trading in BSE at Rs.3019.95 as compared to the previous close of Rs. 3019. The total number of shares traded during the day was 511 in over 13 trades.

The stock hit an intraday high of Rs. 3019.95 and intraday low of 2997. The net turnover during the day was Rs. 1531732.

Source : Equity Bulls

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