The infrastructure segment is limping back to life after the forced lockdowns due to the second wave of the coronavirus pandemic in the country. Nifty Infra closed 0.9 percent higher on Wednesday and slightly outperformed the benchmarks. The last month saw the index take a 1.6 percent hit.
There are other factors playing in favour of some of these infrastructure companies. In the last two days CDSL has moved up nearly 20 percent, BSE is up nearly 12-13 percent. It is same for Computer Age Management Services (CAMS) as well as MCX which is also up as much as 10 percent.
Among the many other reasons behind these gains is higher trading and retail investors’ interest is increasing substantially.
The average daily turnovers recently have moved up as much as 50 percent year-on-year. More importantly, demat penetration throughout the country has also increased by nearly a percent to 4 percent on a year-on-year basis.
A strong response to the ICICI Pru MF Flexicap Fund is also acting as a tailwind.
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(Edited by : Abhishek Jha)