Fund managers bet on metals, power amid geopolitical turmoil

In a month marked by escalating geopolitical tensions involving the US and Iran, and growing concerns around potential AI-led disruptions, fund managers made selective purchases in metals, energy and power stocks.

Buying was seen in Hindalco and Nalco, as both aluminium producers are integrated players that own mines supplying them with raw materials, insulating them from rising global energy costs that are currently hurting European smelters. Fund managers also believe aluminium demand could rise from data centres for cooling, housing and EV batteries.

Some buying was also seen in the power and new energy space, with investments in stocks such as Siemens Energy, JSW Energy and Power Grid.

While Power Grid is seen as a key beneficiary of the Green Energy Corridor, some analysts favour JSW Energy as the company shifts from a thermal-heavy past to a renewable-heavy future. Siemens Energy, which demerged from Siemens, is now being revalued as a play on AI infrastructure and global grid modernisation.