Infrastructure firms see selling pressure

V. Rishi Kumar Hyderabad | Updated on November 14, 2017 Published on March 19, 2012

Feel Budget has not addressed their issues

Infrastructure sector stocks witnessed selling pressure today too after the Union Budget’s presentation on Friday.

This resulted in drop in prices of most infra stocks while others such as GVK Power & Infrastructure Ltd., and Lanco Infratech, who have power projects in their portfolio, bucked the trend, gaining marginally.

The markets closed weak after the Budget presentation and that sentiment continued in today’s morning trade after the weekend. Most of the senior representatives of the infrastructure sector were a disappointed lot as they felt that the Finance Minister, Mr. Pranab Mukherjee, failed to utilise the opportunity to help accelerate the sector growth.

The sector has been witness to a lot of hardships over the past few quarters with interest spiralling up and delay in clearances of projects stalling their progress. Their financial performance has also taken a beating. During pre-budget expectations, they were hoping for some boosted dose from the FM, which was not to be.

However, GVK and Lanco, which have power projects in their portfolio were amongst who have gained marginally due to a favourable announcement for coal imports, where duty was cut. They also have been provided some relief through external commercial borrowings (ECBs). The Budget provided ECB in the power sector to partly finance the rupee debt of existing power plants.

The Infra sector players feel let down with the depressed sentiment reflecting on their stocks.

NCC was down 5.55 per cent to close at Rs. 51.10, IVRCL was down 2.55 per cent (Rs. 51.60), Madhucon Projects was down 2.67 per cent (Rs. 56.80), Gayatri Projects was up 1.08 per cent (Rs. 121.45), Ramky Infrastructure was down 1.62 per cent (Rs. 209.85), GVK PIL was up 0.57 per cent (Rs. 17.55), and Lanco Infratech was up 1.60 per cent (Rs. 19.10).

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Published on March 19, 2012
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