There was virtually mad rush of buyers for infrastructure stocks across the board on Monday, sparked by Finance Minister P Chidambaram’s statement that funds are available for the sector, lifting the segment indices by a record 526 points in a session.
The BSE Capital Goods sector index remained best performer among sectoral indices with a record single session rise of 526.12, or over 4 per cent at 13,596.20 after surging to new high of 13,731.77, contributing key support the benchmark Sensex, which climbed to hit yet another new high of 15,773.37.
Stock observers said reports that an global rating agency HSBC Holdings Plc raised the stocks of engineering and construction major Larsen and Toubro to “overweight” from “neutral too positively impacted the trading sentiments.
Government estimates a need of USD 475 billion over five years to improve the nation’s inadequate infrastructure.
Larsen and Toubro stocks flared up by Rs.139.10 at Rs 2614.40 while power equipment maker Bharat Heavy Electricals gathered Rs 117.40 at Rs 1765.45 on expectations of strong Q1 earnings to be announced on July 30.
Other prominent gainers in this sector included were ABB by Rs 64.70 at Rs 11367.10, Areva by Rs 110.65 at Rs 1646.85, Bharat Electronics by Rs 47.20 at Rs 1862.55, Suzlon by Rs 30.90 at Rs 1532.85, Punj LLoyd by Rs 6.80 at Rs 278.90, Kalpatru Power by Rs 12.55 at Rs 1530.15 and Bharat Earth Movers by Rs 26.15 at Rs 1227.20.