Source: The Economic Times

Construction companies are the rage at the bourses. Analysts across broking firms are projecting a rosy future for this industry and expect a compounded annual growth rate of at least 40% over the next five years. The sector is seeing the kind of following among investors that was enjoyed by the software segment a few years ago. In the past one year the Sensex has moved up 50% and against this the ET Construction index has moved up by 200%.

"India seems to be work in progress. Construction being a primary economic activity is attracting the maximum investor fancy as these companies are expected to sustain growth rates relative to any other industry," says M Shrinath, senior vice-president, Motilal Oswal Securities.

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Posted by pichu at January 29, 2007 8:55 AM