Govt's boost to infra sector may auger well for road sector stocks: Hemindra Hazari

In a chat with ET Now, market expert Hemindra Hazari shares his view on infrastructure at large.

ET Now:The government has come out with new rules and new strategies to safe guard the infrastructure sector, new financing schemes, the 5:25 rule. And now, there is a clear exit clause for some of these build operate and transfer (BOT) players. What is your view on infrastructure sector?

Hemindra Hazari: One has to be choosy in the infrastructure space. I am positive on road space. A lot of road sector companies have done well. On the other hand, I am wary about other sub-categories in the infrastructure sector.

In the EPC space, PPP projects have been complete failure due to economic slowdown. The private sector has really pulled out of projects, citing a variety of reasons such as environmental clearances, slow government. That said, it is the demand slowdown that is hurting the sector.

The Budget 2015-16 had announced a significant increase in allocation to highways and roads departments.

As a result of that, you will see very large orders coming for the road sector. Even midcap names which are involved in the roads and highways projects should do well. This is one of the few sub-segments that I remain positive about.