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Many infrastructure stocks on Friday rallied on optimism that the Centre is committed to shore up the sector’s prospects and present an industry-friendly Budget.
The beleaguered sector, which has been struggling to come out of a tough business cycle for nearly three years, sees the assurances made by the Union Finance Minister Arun Jaitley, the Economic Survey released on Friday and the Union Budget to be presented on Saturday, a potential game changer for the sector.
Based on these expectations, most infra sector stocks which have been range bound over the past few weeks, and some of them finding lows, have gained on Friday closing higher by 2-10 per cent.
Commitment to revitaliseThe government’s commitment to revitalise the public-private participation model and revive investor sentiment has also given some indication about the possibility of an infrastructure-friendly Budget.
The stock of GMR Infrastructure was up by about 9 per cent to close at ₹19.60. GVK Power & Infrastructure’s scrip rose 4.44 per cent to ₹10.11, Lanco Infratech 7 per cent to ₹6.59, NCC 1.38 per cent to ₹77.40, and L&T 5 per cent to ₹1,758.55.
Ramky Infra was up 2.4 per cent to close at ₹47.25, while IVRCL rose 4.84 per cent to ₹18.40.
More steam inWith a huge expectation on the first full Budget of the Narendra Modi-led Government triggering a next growth phase for infrastructure, the stocks may rally further, say analysts.
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