Stocks to buy: Raja Venkatraman's recommends two energy stocks for 12 January

The Sensex crashed 605 points, or 0.72%, to end at 83,576.24, while the Nifty 50 declined 194 points, or 0.75%, to close at 25,683.30. The BSE Midcap index dropped 0.90% while the Smallcap index plunged 1.74%.

Five sessions of sell-off have dragged the Sensex down by 2,186 points, or 2.5%. The Nifty 50 has also suffered a cumulative loss of 2.5% over the past five days.

Best stocks to buy on 12 January as recommended by Raja Venkatraman of NeoTrader.

Energy storage: the need of the hour

India’s energy storage sector is at a pivotal moment, shaped by the twin imperatives of integrating surging renewable capacity and maintaining grid stability as peak power demand approaches 300 GW. With renewable capacity already exceeding 254 GW and accounting for about 26% of electricity generation—touching a record 51% on a single day—energy storage has emerged as the linchpin in India’s push towards its 500 GW non-fossil capacity target by 2030.

Renewable energy momentum

India crossed the 50% non-fossil capacity mark in 2025, reaching around 262–263 GW of installed non-fossil power—five years ahead of its Nationally Determined Contribution (NDC) targets. Combined installed and pipeline capacity now stands at roughly 507 GW.

The country added nearly 50 GW of renewable capacity in 2025 alone, supported by investments of about ₹2 trillion, led by around 35 GW of solar installations between January and November. This expansion has taken total installed power capacity to about 510 GW, with non-fossil sources accounting for nearly 262 GW, including 254 GW from renewables.

Storage demand projections

Managing peak demand nearing 300 GW and annual electricity demand growth of 6–7% will require an estimated 230 GWh of energy storage capacity by 2030 to ensure grid flexibility and round-the-clock reliability. Earlier projections had placed peak demand at 366 GW by 2030, underscoring the urgency as total power capacity is expected to scale up to around 900 GW.

The Central Electricity Authority (CEA) now estimates total storage requirements of about 411 GWh by 2031–32, of which nearly 236 GWh is expected to come from battery energy storage systems (BESS).

Challenges and policy support

Despite strong momentum, challenges persist. Ultra-low bidding, weak technical standards, and financing risks remain key concerns, particularly as batteries account for a large share of capital costs. Experts have highlighted the need for stronger safety norms, revenue stacking through ancillary services markets, and the adoption of diverse technologies, including longer-duration storage solutions.

Policy support is gradually taking shape. Measures include ₹5,400 crore in viability gap funding for 30 GWh of BESS projects with 20% domestic value addition, transmission charge waivers until 2028, and state-level mandates such as Rajasthan’s requirement of 5% storage capacity for renewable projects above 5 MW. CRISIL has also advocated mechanisms such as cap-and-floor tariffs, enhanced viability gap funding, and storage-as-a-service models to reduce investment risk.

Financing and manufacturing imperative

Lenders, including State Bank of India, have stressed the need to evolve risk assessment frameworks to account for storage’s unique revenue profiles, alongside a push for domestic manufacturing and technology-agnostic policies. More than 69 tenders aggregating about 102 GWh were issued in 2025, signalling a clear inflection point. Falling battery prices and advances in fast-charging technologies are further enabling scale.

While 2026 will test execution—especially as projects awarded since mid-2023 move towards commissioning amid tight financing conditions—the broader domestic push aligns with global best practices for building resilient, renewables-heavy power systems.

Against this backdrop, and given the trajectory now unfolding, I have identified two energy-sector stocks that merit consideration in the months ahead.

NTPC (current market price ₹336) - Buy above ₹340, stop loss ₹320, target price ₹395 (Multiday)

• Why it’s recommended: NTPC Ltd (formerly National Thermal Power Corp.) is India's largest integrated energy company. The last few months the trends have been surviving the fall and the revival backed by some strong bullish undercurrent could trigger an upmove. The ADX / DMI seen on the charts are clearly indicating that a new phase has begun. As we can observe a strong foray into nuclear energy and major long-term capacity targets could lead the . After spending the last few months around the TS & KS region we could see the momentum gather pace. We are witnessing clearly spells some upside highlighting a bullish possibility. Look to initiate long.
• Key metrics:
  • P/E Ratio : 21.89
  • 52-week high: ₹371.10,
  • Volume: 10.16M
• Technical analysis: Support at ₹320, resistance at ₹400.
• Risk factors: Payment delays, interest rate hikes, and cost overruns in large projects; operational challenges like dependency on coal costs,.
• Buy: Above ₹340.
• Stop loss: ₹320.
• Target price: ₹395 (6 Months)

NHPC (current market price 82.43) - Buy above ₹83, stop ₹79 target ₹93 (Multiday)

• Why it’s recommended: NHPC Ltd (formerly National Hydroelectric Power Corporation) is India's largest hydropower developer, focused on generating clean energy, primarily hydro, but also solar and wind. As the energy sector is getting into the limelight we need to be focussing on this counter as its involved in managing numerous hydroelectric power stations. Post a strong consolidation on the back of its background as a major force in India's renewable energy landscape, holds more promise. The prices have been holding the recent trendline and RSI is seen consolidation at the neutral zone demonstrating intent to move higher. Look to initiate long.

• Key metrics:
  • P/E Ratio : 29.16
  • 52-week high: ₹92.30,
  • Volume: 21.16K
• Technical analysis: Support at ₹75, resistance at ₹100.
• Risk factors: Hydropower utility, its operations are heavily dependent on geological conditions and long-term, capital-intensive projects.
• Buy : above ₹83.
• Stop loss: ₹79.
• Target price: ₹93 (6 Months)

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.