Today many infrastructure companies like Jaiprakash Infrastructure, GMR, Jaiprakash Power, Jaiprakash Associates, Cummins and IRB Infra among others were the top gainers in A group companies.
This is likely to continue for some more trading sessions, feel analysts.
Based on various brokerage reports about their expectations from the upcoming Budget it is observed that market is expecting the infrastructure sector to be the key focus of the Budget once again but this time the emphasis has to be even more than before.
However, besides budgetary allocations, investors are keen to watch non-monetary measures in order to make things easy for execution of the projects and attract more investments.
Says Angel Broking in its Budget Preview report, “We expect the Finance Minister to address the slowdown in investment and growth, by taking positive steps to strengthen the investment environment and revive growth. Measures such as increasing budgetary allocation to the sector, improving the clearance mechanism, providing tax sops/benefits and channelizing long-term, low-cost funding for infrastructure projects, increase in tax saving limit for investment in tax-free bonds, etc are likely to boost growth in the infrastructure sector.”
Though Aditya Birla Money has expectations on the same lines, there is some difference. Lowering or abolishment of MAT tax, creation of long term dedicated debt funds and priority sector lending status for infrastructure sector funding are the key expectations of the Aditya Birla Group-led brokerage firm.