Power Stocks Rally Hinges on Demand, Solar May Face Oversupply in 3-4 Years: Axis Capital Power stocks have shown resilience during market volatility, but sustained gains will depend on rising demand, according to Axis Capital. Sumit Kishore, Executive Director at the firm, highlighted that the sector’s recent performance has been driven by its defensive appeal, particularly in risk-off environments. He emphasized that the power sector, including both traditional and renewable energy sources, could act as a safe haven if geopolitical tensions, such as the ongoing US-Iran conflict, continue to disrupt global markets. Kishore noted that while solar capacity has surged with record additions, the sector risks becoming oversupplied within the next 3-4 years if demand growth does not keep pace. This concern is amplified by the rapid expansion of renewable energy infrastructure in India, where FY26 saw a historic increase in capacity additions. Specifically, 45 gigawatts (GW) of solar and 6 GW of wind capacity were installed during the year, bringing total renewable additions to nearly 57 GW. This marks a 12% year-on-year increase, reflecting the country’s aggressive push toward clean energy. India’s renewable energy targets remain ambitious, with a goal of achieving 786 GW of installed capacity by FY36. This includes existing infrastructure such as large hydroelectric projects and other non-fossil fuel sources, which currently stand at around 225–230 GW. Kishore argued that the nation has a long growth trajectory ahead, supported by favorable policy frameworks and increasing energy demand. However, he cautioned that investors should approach the power sector with a balanced perspective.#renewable_energy #india #us_iran_conflict #axis_capital #sumit_kishore
Copper Market Shifts Structural as AI Demand and Supply Deficits Tighten Outlook China remains the anchor of global copper demand, but its role is evolving. In previous cycles, higher prices often triggered a familiar response: weaker domestic consumption and increased refined exports from Chinese smelters. This time, that elasticity appears lower. Grid investment, property stabilization efforts and industrial policy are keeping demand more resilient, even at elevated prices. That reduces the likelihood of China acting as a swing exporter and instead positions it as a steady absorber of supply. The key signal is whether infrastructure and energy investment translate into sustained physical demand rather than inventory accumulation. If it does, the usual supply relief mechanism may not materialize. New demand drivers are layering onto the existing demand structure. Data centres expansion linked to AI and high-performance computing is emerging as a non-traditional but fast-growing source of copper demand. Forecasts suggest around 475kt of demand in 2026, up roughly 110kt year-on-year. While still small relative to total demand, its growth is rapid and geographically concentrated, tightening regional supply conditions. At the same time, electrification continues to scale. Electric vehicles require two to four times more copper than internal combustion engines, while renewable energy systems and grid upgrades are structurally copper-intensive. These trends are not sensitive to short-term price movements; they are policy-driven and capital-intensive, making demand more persistent. Supply constraints remain the limiting factor in the market. The International Copper Study Group projects a refined copper deficit of around 150,000 tonnes in 2026, reflecting ongoing constraints.#renewable_energy #electric_vehicles #china #international_copper_study_group #data_centres
--- Analysis of Polycab India: A Comprehensive Overview Market Position and Valuation Polycab India has a market capitalization of approximately ₹1.06 lakh crore. Over the past 12 months, its Price-to-Earnings (P/E) ratio has ranged between 41.85 and 44.39, reflecting investor confidence in its future earnings potential. This valuation is higher than that of competitors like KEI Industries, whose trailing twelve months (TTM) P/E ratio ranges from 38.26 to 61.1. Polycab is India’s largest integrated wire and cable manufacturer, holding 26-27% of the domestic organized market and approximately 18% of the total Indian market. The Indian wire and cable market is projected to grow at a compound annual growth rate (CAGR) of 5.1% to 14.5% over the next decade, reaching over $35 billion by 2032-2035. The communication cable segment, driven by data centers and 5G, is expected to be the fastest-growing segment. Key Risks Polycab faces significant risks from the current geopolitical climate, which could disrupt exports and squeeze margins. Fluctuations in raw material prices, such as copper and aluminum, also pose challenges, as unmanaged price volatility could impact profitability. While most analysts remain positive, a major geopolitical event or a decline in domestic infrastructure spending could affect the company’s earnings and share price. Polycab’s presence in export markets, though limited, exposes it to external risks. Competitors like KEI Industries are actively vying for market share, and ongoing price wars could further pressure margins across the industry. Analyst Sentiment Brokerage houses have issued mixed but largely positive ratings for Polycab India. JM Financial and ICICI Securities have maintained their "Buy" ratings, with target prices of ₹9,000 and ₹7,800, respectively.#renewable_energy #india #polycab_india #kei_industries #wire_and_cable_market
The US Had a Big Battery Boom Last Year Despite Donald Trump's unrelenting attacks on renewable energy, there's a quiet revolution happening on US grids. #Donald_Trump #Big_Battery #Battery_Boom #Trump_unrelenting #renewable_energy #unrelenting_attacks
