Infrastructure Finance sector update - Geojit BNP Paribas Financial Services

- Stock prices of infrastructure finance companies have improved sharply in the last one month, outperforming the Sensex.

- Further upside may be expected in these category stocks, as the key catalysts for infrastructure finance companies like reforms on the coal supply side, 1QFY13 result and the expected interest rate cut are yet to play out.

- It seems that the outlook on the sector is improving and it is likely to sustain.

- Higher than expected NPA, lower than expected loan growth and deteriorating global environment are key risk to the thesis.

Source : Equity Bulls

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