Infrastructure stocks dying for reforms: Dhiraj Sachdev, HSBC AM India

In an interview with ET Now, Dhiraj Sachdev, Senior VP & Fund Manager-Equities, HSBC AM India, shares his views on markets:

ET Now: The other set of stocks which are dying for reforms and some have started to come in with what has happened to energy, so oil and gas done, coal done but lots expected from infra as well, people are talking about the Land Acquisition Bill and a few other things which will probably ease business for some of these companies as well, what is the expectation there because that is a space that is not featured in the top gainers list for the last maybe five or six years, could the next 12 months be different?

Dhiraj Sachdev: Our sense and belief is yes, infrastructure cycle has to pick up. These are tangible large physical infrastructure assets and it cannot be built over the next few quarters etc. So yes, the investment cycle which has lagged behind in the last so many years should pick up over times and infrastructure is a very broader segment. It includes a gamut of businesses and sectors like capital goods, ports, railways, mining etc. and our sense is that the cyclical recovery over the next two years will improve the utilisation level of most of these companies which will (1:11:57) the margins and the earnings. So yes, it is high time that the infrastructure stocks should also recover on the earnings front.