Home > Market View > Power Grid IPO listing- PFC, PTC flare up

Power Grid IPO listing- PFC, PTC flare up

Thursday, October 4, 2007 Leave a comment Go to comments

Tomorrow is the listing of one of the most awaited IPOs on Indian markets- Power Grid Corporation of India.Now the bigger question is how to play it?

Smart traders have already started to play it by buying PFC ,PTC and NTPC. Even I had recommended buying these stocks(PFC, PTC and NTPC) when I had discussed this IPO . I have been listening with amusement how fundamental guys have suddenly started to view ‘NTPC ” as a great stock ( Potential of building Nuclear power plants!!!). I can clearly see how smart money is entering these stocks to make a quick buck!Tomorrow might see another rally in these stocks.

As far as Power grid is concerned, the best way to play it might be to ride the momentum in the short term. If you plan to buy for long term then you should enter after the volatility in the stock comes down or enter after analysts start saying that it is “expensive”. As there was huge demand for the stock, the stock can land anywhere after listing.I personally expect atleast 80+ listing price.

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  1. hart
    Wednesday, October 10, 2007 at 1:31 pm

    Given the historical data over how PSUs (barring few index giants) have done in India … this script will surely attract a lot of interest!

  2. sagecapital
    Friday, October 5, 2007 at 7:41 am

    When markets fall- no stock shall be spared!This is because in a single market all the stocks are correlated.
    At the same time, stronger stocks are the first to recover after the fall.
    Also, the stocks with high alpha(excess return) also tend to have high beta(volatility).

  3. Atul
    Thursday, October 4, 2007 at 10:43 pm

    PTC…between Rs. 97 and Rs. 105/- is this still a good pick??

    Also, just in case if the market tumbles will it drag the Power sector stocks also? If so will they be having same level of drop as other sectors or relatively less as compared to other sectors??



  4. sagecapital
    Thursday, October 4, 2007 at 9:38 pm

    The stock has not even listed and people have started giving targets also!!
    Even power grid management might not have a one year earnings visibility but these analysts are quick to put fictitious earning numbers into their models and come up with targets!

  5. visu
    Thursday, October 4, 2007 at 9:07 pm

    Some people r giving a one year target of 150 🙂

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