Credit policy very positive for infrastructure companies: ICICI Direct

Pankaj Pandey, Head of Research, ICICI Direct in a chat with ET Now talks about the infrastructure companies given the announcement of the credit policy.

How big a positive was the announcement about the infra companies in the credit policy? The markets have given a thumbs up to the stocks, likes of Roman Tarmat and IRB Infra but how big a positive it is?

See, we have been positive on infrastructure side and especially if we look at the Chaturvedi Committee recommendations, which had come wherein clarity on viability gap funding and all has been a big positive and if infrastructure companies are able to source fund easily, that will be one of the biggest drivers since we are in an upward trending interest rate trajectory environment.

In that sense, for infrastructure companies if they get sources to long-term funding at attractive rates, that will be one of the crucial factors, which will drive because we would expect order inflows to really pick up, especially if you have seen about 8-9 months wherein the economy started picking up, so these sectors since thay perform, this is a good time wherein they will really reap the benefits of better pricing of loans going forward, so that way it is very positive for infrastructure companies.