With interest in roads, airports and power, Street expectations are typically higher for GMR, leading to pre- and post-Budget volatility in the stock. The government had increased plan outlay by 49 per cent in 2016-17, as it announced plans for 10,000 km of national highway orders and 50,000 km of state highway India Budget News upgradation. Incentives to the power sector by way of improved coal availability, gas power subsidy and distribution incentives did come but coal cess was a dampener.
Current Budget: Higher infra spends should help GMR, which is under pressure. Measures to improve power demand, given that supply exceeds demand, and steps to improve in financial health of state distribution companies will be crucial. Higher offtake of power will help GMR.