Heard on the street
A few fund houses are trying to cash in on the positive sentiment surrounding the infrastructure sector.
By ET Bureau |
Fund houses ride the infrastructure wave
A few fund houses are trying to cash in on the positive sentiment surrounding the infrastructure sector. Anticipating huge government spending in this space, fund houses have now begun aggressively promoting their infrastructure funds.
If market grapevine is to be believed, a few fund houses - one of which is a large corporate-promoted asset management company - are planning to launch infrastructure funds as soon as they get regulatory approvals. The corporate-promoted fund house is planning to launch its fund towards the end of this month.
According to distributors, the fund house has set an NFO mobilisation target of Rs 2,000 crore. Equity analysts estimate that nearly $700 billion will be spent on infrastructure over the next five years. The positive sentiment has rubbed off on infrastructure stocks as well, with companies such as Gammon India (up 17% at Rs 134), Nagarjuna Construction (up 16% at Rs 114), Lanco Infratech (up 9% at Rs 312) and L&T (up 16% at Rs 114) being lapped up by both retail investors and fund managers in sizeable quantities.
Standard Chartered���s IDR issue plan gets going
UK-BASED Standard Chartered���s plan to launch an Indian Depository Receipts (IDRs) issue is gathering steam. According to merchant bankers involved with the issue, the foreign bank has sought clarity from regulatory bodies on whether securities transaction tax (STT) would be applicable to IDRs and has also written to insurance regulator IRDA seeking details on whether insurance companies can invest in IDRs. The foreign bank has appointed JM Financial, UBS AG, Goldman Sachs, Bank of America and Kotak Mahindra to manage the issue.
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Contributed by Shailesh Menon & Reena ZachariahToo busy to trade in stocks? Invest in Mutual Funds with ET Money!
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