Don't expect any optimism in infrastructure sector till elections: C Jayaram, Kotak Mahindra Bank

In a chat with ET Now, C Jayaram, Joint Managing Director, Kotak Mahindra Bank Limited, shares his views on the current outlook of the infrastructure sector. Excerpts:

ET Now: A lot of people this quarter are betting big on capital goods as well as infrastructure as a space and also in the run up to the 2014 elections. What is your view on the space?

C Jayaram: At structural level, there is not much cost of optimism in this sector. With elections just six months away, it is unlikely that you will see any specific policy decisions which will lead to greater investment in this sector.

It is unlikely that private sector companies will kick-off any new projects over the next few months; there is no reason why this sector should look good till such time as the elections are out of the way.

Having said that, markets always move ahead of the real economy and so to that extent, if there is a belief that over one-two year timeframe given current valuations in some of these stocks and sectors, there could still be some surprises there.