As Indian stock markets extended their losing streak for a fifth straight session, market expert Raja Venkatraman, co-founder of NeoTrader, has identified two energy sector stocks for investors to consider on January 12. The recommendations come against a backdrop of heightened market volatility and a compelling long-term narrative for India's energy storage sector.
Market Sentiment Remains Under Pressure
On Friday, January 9, the benchmark indices closed deep in the red. The Sensex plunged 605 points, or 0.72%, to settle at 83,576.24, while the Nifty 50 fell 194 points, or 0.75%, to close at 25,683.30. The broader market saw even sharper declines, with the BSE Midcap index dropping 0.90% and the Smallcap index tumbling 1.74%. Over the past five sessions of sustained selling, the Sensex has lost a cumulative 2,186 points, or 2.5%, with the Nifty mirroring this decline.
Analysts attribute the weakness to renewed concerns over US tariffs, investor caution ahead of the second-quarter earnings season, and persistent foreign capital outflows.
The Energy Storage Imperative: A Sector Primed for Growth
Venkatraman's focus on energy stocks is underpinned by a transformative phase in India's power sector. The country's push towards its ambitious target of 500 GW of non-fossil fuel capacity by 2030 has made energy storage the critical linchpin for grid stability.
India's renewable energy capacity has already crossed 254 GW, contributing roughly 26% of electricity generation and even hitting a record 51% on a single day. With peak power demand nearing 300 GW, the Central Electricity Authority (CEA) estimates a need for about 411 GWh of energy storage by 2031–32, with nearly 236 GWh expected from battery energy storage systems (BESS).
The sector is receiving significant policy support, including ₹5,400 crore in viability gap funding for 30 GWh of BESS projects and transmission charge waivers until 2028. Over 69 tenders aggregating about 102 GWh were issued in 2025 alone, signaling a major inflection point.
Raja Venkatraman's Stock Recommendations for January 12
Against this promising sectoral backdrop, Venkatraman has shared his exclusive picks for investors.
NTPC Ltd (Current Market Price: ₹336)
Action: Buy above ₹340.
Stop Loss: ₹320.
Target Price: ₹395 (Multiday/6 Months view).
Venkatraman recommends India's largest integrated energy company, highlighting its strong foray into nuclear energy and significant long-term capacity targets. He notes that after consolidating for several months, the stock's technical indicators, including ADX/DMI, suggest a new bullish phase is beginning. The charts indicate strong bullish undercurrents that could trigger an upward move.
Key Metrics: P/E Ratio of 21.89; 52-week high of ₹371.10.
Technical Levels: Support is placed at ₹320, with resistance at ₹400.
Risks: Payment delays, interest rate hikes, cost overruns in large projects, and operational challenges linked to coal dependency.
NHPC Ltd (Current Market Price: ₹82.43)
Action: Buy above ₹83.
Stop Loss: ₹79.
Target Price: ₹93 (Multiday/6 Months view).
The analyst recommends India's largest hydropower developer, which is also expanding into solar and wind energy. He states that as the energy sector gains prominence, this counter deserves focus. The price is holding a recent trendline, and the RSI is consolidating in a neutral zone, demonstrating intent to move higher following a period of strong consolidation.
Key Metrics: P/E Ratio of 29.16; 52-week high of ₹92.30.
Technical Levels: Support is seen at ₹75, with resistance at ₹100.
Risks: Operations are heavily dependent on geological conditions, and projects are typically long-term and capital-intensive.
Disclaimer: Raja Venkatraman is the co-founder of NeoTrader (SEBI Research Analyst Registration No. INH000016223). Investments in securities are subject to market risks. The views and recommendations are those of the individual analyst and do not represent the views of Mint. Investors are advised to consult certified experts before making any investment decisions.
