Power Grid, NTPC may relatively outperform rangebound mark: Mehraboon Irani

In a chat with ET Now, Mehraboon Irani, Nirmal Bang Securities, shares his views on power stocks.

ET Now: Would you look at power space or wait for the market to give a better opportunity because the story is playing out only now? With the meeting on refinancing of discoms scheduled for Wednesday, is this the right time to look at these stocks.

Mehraboon Irani: I have been one of the most ardent, but I have been the proponent of the space as whatever steps the government is taking, they are in the right direction. That said, the steps will take their own time to show results. I personally feel that there is certainly a long-term opportunity. Stocks like Power Grid and NTPC could relatively outperform the market, if the markets are not going to go anywhere in terms of the index for the next three to six months. So, if Nifty stays at 8,100 or 8,300 or maybe 7,800, three months later, such stocks could see relative outperformance.

Power is definitely a better bet especially because it is beaten down and many things have started happening; a lot of things are yet to happen. Somewhere down the line, you need to go and buy into them. If you have a market which does not do too many things in terms of the frontline indices, I distinctly feel this sector could see a relative outperformace.