Bullish on diverse opportunities in power sector, says Invesco MF's CIO

Taher Badshah, Chief Investment Officer (CIO) at Invesco Mutual Fund, in a recent interview with CNBC-TV18, shared insights into the burgeoning opportunities within the power sector in India. According to Badshah, the landscape is not limited to solar and wind energy but extends to ancillary services, non-renewables, and traditional fossil fuel-related power entities.

"There are quite a number of opportunities, particularly on the ancillary side, even more than the solar and renewable space. Not just solar and wind, but renewables as such, and even non-renewables and the traditional fossil fuel-related power entities are doing much better now than what they were doing earlier," Badshah remarked.

The surge in the power sector, according to Badshah, is driven by the positive momentum in India's manufacturing sector. "It is all propelled by the fact that manufacturing in India has started to look up, and we have seen power consumption hit records in terms of growth after a very long period of time," he explained.

Anticipating a buzzing environment in the power sector, Badshah expressed optimism about new opportunities and the entry of innovative companies into the capital markets. "So, I think this whole area will probably buzz, and there will be opportunities. There will also be newer companies which will probably seek the capital markets. So we have some exposure to some of the traditional as well as some of the renewables in our portfolios," he added.

Moreover, Badshah emphasized that this dynamic space would continue to attract attention from various categories, indicating a sustained interest in both traditional and renewable aspects of the power industry. As India's power consumption hits new heights and manufacturing gains traction, the power sector appears to be a promising arena for investors seeking diverse opportunities.