Utilities preferred way for a power play: Morgan Stanley

Mumbai: Morgan Stanley said regulated power utilities are the preferred way to bet on India's estimated rise force consumption. The brokerage said while NTPC is his first choice among utility companies, he is also optimistic about Power Grid Corporation.

"We believe regulated utilities are well positioned to expand their incremental market shares given benign competition," Morgan Stanley analysts Girish Achhipalia, Amit Bhinde and Pranjal Jain said in a note to clients.

The brokerage forecasts capital spending of more than $550 billion in the country's electricity sector over the next 10 years.

Morgan Stanley reiterated its 'underweight' ratings on torrent power and tata power.

"Private independent power producers have also improved their balance sheets and should see growth in their asset base, but managements are conservative and will need to make rational capital allocation decisions as there is too much to choose from," the analysts said.

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