Commodities
Morgan Stanley Flags 3 Surprises Boosting Oil Stocks Amid Energy Sector Resilience
Morgan Stanley has published its largest note on India's energy sector, expressing optimism about several oil and gas companies.
The foreign brokerage firm is positive on HPCL, BPCL, ONGC, Adani Power Ltd, Adani Energy Solutions Ltd, and Oil India Ltd.
Morgan Stanley cites three key surprises that will benefit investors in the energy sector: the diffusion of coal, LNG, and renewables in power and energy markets; electricity spreads for fossil-based power generation rising as renewable costs increase; and a shift in capital allocation towards trading, agility, and expanding fuel storage.
The firm notes that despite higher costs, India's LNG consumption has not slowed down, with pricing power improvements across power and energy supply chains.