The News International Team
The finance ministry seeks to extend the 5:25 scheme to all stalled infrastructure projects. The scheme is likely to help easing project and finance bottlenecks. It will also address issues related to the non-performing assets.
Speaking to CNBC-TV18, KK Mohanty, MD, Gammon Infrastructure says the 5:25 scheme is a positive step for infra companies and will be more effective at lower interest rates.
According to him, interest rate of construction projects is currently around 12 percent. Post 5:25 scheme, investors can earn returns at the start of the project.
The company is planning to implement the scheme for its new projects.
01:30pm MTNL in focus
Telecom Minister Ravi Shankar Prasad says there is no proposal for disinvestment of MTNL and BSNL.
In fact, the government is in process of revitalising both companies, says Prasad, adding revival measures include merger of MTNL and BSNL and four groups formed to study BSNL and MTNL merger.
01:00pm Market Check
Equity benchmarks gained marginal strength amid volatility, supported by banks, oil, auto, capital goods and select metals stocks. The Sensex rose 32.59 points to 28476.60 and the Nifty advanced 17.65 points to 8542.35.
The broader markets extended gains in afternoon trade. The BSE Midcap and Smallcap indices climbed 1.7 percent each. About two shares advanced for every share declining on the Bombay Stock Exchange.
Rakesh Arora, Macquarie says despite the outperformance relative to global markets, the Indian market is still below previous valuation peaks.
He believes the market can re-rate further to 16-17x if economic recovery is stronger-than-expected. “Our 12-month Nifty target is 9,940 based on 15x FY17e EPS,” he says.
Shares of BHEL and Sesa Sterlite kept top position in the buying list in the Sensex, up 2.5-3 percent. ICICI Bank, Axis Bank, ONGC, Reliance Industries, Mahindra & Mahindra, State Bank of India and Maruti Suzuki gained 0.6-1.6 percent.
However, ITC, HDFC, TCS, Infosys, Dr Reddy’s Labs, Bharti Airtel and Hero Motocorp declined 0.5-2 percent.
In the midcap space, Firstsource Solutions, Bajaj Electricals, Natco Pharma, Max India and Indian Bank climbed 7-12 percent while Sundaram-Clayton, Astral Poly, SpiceJet, Hindustan National Glass and Ramco Cements fell 2-4 percent.