NEW DELHI: Real estate and infrastructure firms could end up scoring big when finance minister unveils his big Budget on Saturday. The signs were palpable on the bourses with Unitech seeing over 16 per cent jump while Shobha, Oberoi Realty, Housing Development and Infrastructure Company (HDIL) all garnering between 3-5 per cent.
According to Kirti Doshi, Antique Stock Broking, this space is going be exciting soon. "We have huge savings on the oil subsidy side. Earlier, it used to be the biggest on the balance sheet of the government. Now that money can be used to kickstart the economy by increasing spending on infrastructure."
Infra, Doshi said, could occupy a chunky space in FM's Budget briefcase.
"If you want to take on inflation, then infra spending is the only way you can increase the supply in the system. So the focus should be on building infrastructure. The government should make it as easier for people who want to enter infra-related businesses. Investors too should be given a fair boost."
Doshi, however, feels the sector should be given some ease in regulations. "There are large companies that have that capacity to execute projects in this sector. The government needs to give them more freedom. Rules and regulations should also be made easier. Investors are waiting for this sector to open up. There is much money waiting to come in. I do not think there is any problem with potential capital."
"Once the government has its policies right, investors will definitely come in to participate in infra projects," said Doshi.