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Thursday, 17 July 2014

latest news,updates of RBI: RBI granted infrastructure status to affordable housing.

Shares of infrastructure companies continue to remain in demand, surging by up to 36% in past two trading sessions after the Reserve Bank of India (RBI) eased infrastructure lending and housing loan norms, which can potentially lower the cost of infrastructure funding in the medium to long term.

Jaypee Infratech, Sadbhav Engineering, IRB Infrastructure Developers, Punj Lloyd, IL&FS Transportation Networks (ITNL) and Kolte Patil Developers have gained more than 4% each on the Bombay Stock Exchange (BSE) today.

RBI said on Tuesday that banks would not have to maintain the cash reserve ratio or statutory liquidity ratio rules, or priority sector lending targets, for funds raised through bondsfor extending credit to these sectors. Further, the RBI granted infrastructure status to affordable housing.

Analyst at Barclays believes that these steps will be positive for infrastructure asset owners in India.

Among the individual stocks, Jaypee Infratech has surged nearly 14% to Rs 39.40, extending its previous day rally on BSE. The stock soared 36% from Rs 28.95 in past two trading sessions.

Sadbhav Engineering and ITNL gained 6% each at Rs 210 and Rs 234 respectively, while IRB Infrastructure and Punj Lloyd up 5% each at Rs 265 and Rs 48 respectively.
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