Shares of infrastructure companies pared early gains and ended with losses amid a volatile broader market despite Finance Minister Arun Jaitley proposing a sizeable Rs 70,000 crore increase in investment for the sector.
GMR Infrastructure dipped 4.34 per cent, Gammon Infrastructure slipped 2.44 per cent, Unity Infraprojects was down 0.88 per cent and Lanco Infratech fell by 0.30 per cent on the BSE.
"Tax-free infrastructure bonds for projects in Railways and roads will boost investments in infra and railways, and this will be reflected on the stocks," said Rohit Gadia, Founder & CEO, CapitalVia Global Research.
Asserting that India's infrastructure is a mismatch with its growth ambitions, Finance Minister Arun Jaitley proposed a sizeable Rs 70,000 crore increase in investment in the sector, besides a slew of steps to spur growth.
Presenting his maiden full-fledged Budget in Parliament, Jaitley said, "It is no secret that the major slippages in the last decade has been on the infrastructure front. Our infrastructure does not match our growth ambitions. There is a pressing need to increase public investment."
He said permitting tax free infrastructure bonds for projects in rail, road and irrigation sectors is also on the anvil.
