Thursday, July 26, 2007

India gets a new realty index

On Tuesday, Infrastructure Development Finance Co. Ltd (IDFC) and the FTSE Group which is owned by The Financial Times of London and the London Stock Exchange launched an infrastructure index which will keep an eye on the performance of 63 companies.

The index features companies in transportation, infrastructure like roadways, railways and aviation; power generation, communications infrastructure and would also include those involved in water supply as well. Firms have to be listed on either the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE).

It is estimated that in the next few years India will invest as much as $320 billion on infrastructure. Rajiv Lall the managing director of IFDC said last afternoon that the 63 companies have grown at an average compounded annual growth (CAG) of 58% as opposed to 25% growth posted by the NSE and BSE.