Infra stocks shining at bourses
The double digit factory output data lifted markets overall. But within sectors, stocks with an 'infra ' tag attracted investors the most on Monday.
By Rajesh Chandramouli, TNN |
CHENNAI: The double digit factory output data lifted markets overall. But within sectors, stocks with an 'infra ' tag attracted investors the most on Monday.
"The infrastructure stocks which saw a sharp correction in 2008, started bottoming out in March 2009, mainly due the substantial rise in government spending and a low interest rate regime, said S Vignesh, an analyst with Paterson Securities. "Going ahead, the planned infrastructure spending from the government, which is committed to keep the GDP growth around 8% and a renewal in the economic activity ��� indicated by healthy IIP figures ��� make this sector more attractive for the next 1-2 years."
Stocks such as Era Infra, Gammon, IRB Infra, Lanco Infratech, Simplex Infra and Supreme Infra scaled their new 52-week peak at the BSE on Monday.
"The government's changed stance of awarding road contracts only to those projects where 80% of land has been acquired will ensure projects don't get stuck mid-way . Therefore from now, if a project is awarded it would be safe to assume that it would be completed on time," Lalit Jalan, chief executive of Reliance Infra, told TOI. "This is a huge relief for road developers."
A recent survey report from Ficci said that housing demand in the affordable category is expected to see a growth of 30% in demand. "There is overall optimism in the market. People believe that the government is keen to push ahead reforms in mass housing and road building - pushing infra companies to newer heights," said a dealer with brokerage.
"The infrastructure stocks which saw a sharp correction in 2008, started bottoming out in March 2009, mainly due the substantial rise in government spending and a low interest rate regime, said S Vignesh, an analyst with Paterson Securities. "Going ahead, the planned infrastructure spending from the government, which is committed to keep the GDP growth around 8% and a renewal in the economic activity ��� indicated by healthy IIP figures ��� make this sector more attractive for the next 1-2 years."
Stocks such as Era Infra, Gammon, IRB Infra, Lanco Infratech, Simplex Infra and Supreme Infra scaled their new 52-week peak at the BSE on Monday.
"The government's changed stance of awarding road contracts only to those projects where 80% of land has been acquired will ensure projects don't get stuck mid-way . Therefore from now, if a project is awarded it would be safe to assume that it would be completed on time," Lalit Jalan, chief executive of Reliance Infra, told TOI. "This is a huge relief for road developers."
A recent survey report from Ficci said that housing demand in the affordable category is expected to see a growth of 30% in demand. "There is overall optimism in the market. People believe that the government is keen to push ahead reforms in mass housing and road building - pushing infra companies to newer heights," said a dealer with brokerage.
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