The Hindu Business Line : Infra stocks may be upbeat on higher outlay hopes

MUMBAI: Shares of infrastructure-related companies are likely to remain upbeat and provide significant returns to investors, riding on hopes of increased funding for various infra projects in the upcoming Budget, analysts said.

Infrastructure-related industries including construction, cement and power have been on a gaining streak after the Congress-led UPA received a decisive mandate in its favour in the general elections.

“Clearly with the government spending on infrastructure sector expected to grow considerably under the new government, market sentiment is bullish on stocks of companies related to this sector, including construction, cement, power and capital goods,” Bo nanza Portfolio Assistant Vice President, Mr Avinash Gupta said.

Major construction and infrastructure firms, including Maytas Infra, Ansal Housing, Hindustan Construction Company, IVRCL Infra and Jaiprakash Associates have gained in the range of 17-64 per cent in May 18-June 19 period, an analysis shows.

According to brokerage firm Edelweiss report an increase in funding for infra schemes such as NHDP and Pradhan Mantri Gram Sadak Yojna (PMGSY), accelerated Irrigation Benefit Programme (AIBP) and Bharat Nirman among others is expected in the Union Budget .

The Union Budget would be presented by the Finance Minister, Mr Pranab Mukerjee on July 6 in Parliament. - PTI

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