Pick up the latest issue of Wealth Insight for an in-depth analysis of the infrastructure sector & the reality behind the revival hopes
30-Oct-2014 •Research Desk
In everything that the Narendra Modi government has set out do, from 'Make in India' to Swachh Bharat, it is implicit that the country will need a huge amount of infrastructure created. This will mean new, as yet unplanned projects as well as quick debugging and execution on stalled and abandoned projects.
The impact on the equity markets has been enormous. Infrastructure stocks have been on a tear ever since it became clear--months before the actual election results--that a stable NDA government was on the cards.
However, have valuations run ahead of reality? Have these stocks risen too far, too fast? To take but one example, even though the coal ordinance is a huge step forward in fixing the power sectors' supply woes, it'll take some time, as well as the solution of many more problems before we can see actual rupees filtering down to infra companies' bottomlines.
At the end of the day, investors make money not by following fashions but by careful, cool-headed evaluation of which stocks to buy and which to avoid. For an in-depth analysis of the sector and the reality behind the revival hopes, read our cover story of the month, The Invisible Infrastructure Story.
Our stock analysts choice for the month are two of the biggest heartbreakers for Indian investors, Infosys and Tata Motors. These are two of the largest and most high-profile companies in India, and over the last decade they have oscillated between hope and despair many times. Now, it does appear something significant is changing in both. But is this hope justified? Or will there may be disappointment this time too? Read our analysis to find out what their prospects are.
We also have a host of other features for this issue:
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