Further re-rating likely for NTPC stock: Here are a few possible triggers

Capacity expansion, high operational efficiency, focus on renewables and reasonable valuation are triggers

A sharp increase in power demand has been visible as economic activity revives. After shrinking in 2020-21, GDP is expected to grow by 9-10 per cent in 2021-22 according to various estimates. Merchant power is being traded at high rates on the IEX.

All this should be good for power generators. The BSE Power Index (which includes Capital Goods stocks like BHEL, Thermax and Torrent) and NSE Energy (which includes stocks like ONGC, Indian Oil, Gail and Reliance Industries) have moved to new highs.

But surge in demand has coincided with coal shortages, when global prices of coal and natural