Infrastructure stocks recover from last week's falls

Reuters Market Eye - Shares in infrastructure and capital goods companies gained after last week's falls were seen as excessive, traders say. Infrastructure stocks were the major gainers of a near 20 percent rally in the broader NSE index <.NSEI> this year on hopes the new Modi government would make a major push to boost infrastructure.

But shares fell last week due to disappointment that the budget lacked major initiatives for the sector. Still, traders note they still expect new initiatives from the government going forward.

Shares in engineering and construction major, Larsen and Toubro Ltd gain 1.4 percent. The stock fell 9.7 percent in the previous week but is still up 52.9 percent so far this year.

 

Bharat Heavy Electricals Ltd is up 1.2 percent after falling 15.1 percent in the previous week. The stock is up 31.2 percent so far this year.

GMR Infrastructure Ltd gains 1.9 percent after falling 17.7 percent in the previous week, while GVK Power and Infrastructure Ltd , which fell 14.6 percent last week, is up 1.3 percent.

(Reporting Indulal PM)