Vijaykumar Bupathy, assistant vice president of research at Spark Capital Advisors, says stocks of Indian power companies with foreign institutional investors will suffer after Standard & Poor’s downgrade of the U.S. credit rating.
Utilities in the second-fastest growing major economy are raising funds globally to meet the government’s plan to add 100 gigawatts of electricity generation capacity by 2017. Bupathy spoke by telephone from the southern city of Chennai.
“Companies with the greatest FII holdings stand to lose the most today when there’s a mass pull-out from foreign investors. That includes IVRCL Ltd., Lanco Infratech Ltd., Reliance Power Ltd. and GMR Infrastructure Ltd.
‘‘GVK Power beat first-quarter expectations on Saturday, which is why they are one of just a handful of companies that’’ gained today.
-- Editors: John Chacko, Paul Gordon