CPSE ETF likely to rise 25% in a year, says Ashish Chaturmohta

The CPSE ETF, a passive investment fund allowing investors to bet on India's largest government-owned firms, is likely to rise 25% in a year, according to Ashish Chaturmohta, managing director (PMS business) at JM Financial. The CPSE ETF has constituents such as NTPC, Bharat Electronics (BEL), Power Grid Corporation, ONGC, and Coal India, with the top 10 stocks comprising over 98% of the fund.

Currently, the CPSE ETF trades at Rs 102.26 level.  Chaturmohta told Business Today TV that he expects the ETF to reach close to Rs 125- Rs 130 zone in a year.

Chaturmohta believes that after selling in these growth stocks, the valuations will turn attractive, offering a good opportunity for buyers.
 
As demand for power rises amid shortages, stocks such as NTPC and PowerGrid are likely to benefit, according to Chaturmohta.

He expects AI to consume a big share of this electricity.

"So currently, our data center capabilities are close to 1.5 gigawatt but by 2030, we estimate this number to go to around 8 to 10 gigawatt. We are going to consume almost 970, 980 terawatt in terms of electricity and that is where I think the electricity consumption is now dependent a lot even on the AI. Hence, we believe that demand is going to rise and stocks such as NTPC and PowerGrid, are going to play a very crucial role in terms of energy dependency," said Chaturmohta.