Cautious on infrastructure space: Kotak Institutional

Sandeep Bhatia, executive director and head of sales at Kotak Institutional Equities said they remained cautious on the infrastructure sector.
 
Bhatia told CNBC-TV18, “As far as capex and infrastructure sector is concerned, there is reason for continued caution there. I do not think balance sheet issues of the large corporates have been sorted out. Also policy action needs to be clearer. To that extent I do not think that sector is going to see a huge rebound anytime soon.”
 
“The best we can expect is maintaining the current low digit kind of earnings growth for the large well-capitalized companies and some kind of resolution for the companies which have balance sheet issues. I do not know whether we can expect the market to bail them out. Right now there is no appetite for these kinds of issuances,” Bhatia added.