L&T, ABB India: Analysts bet on capex-related plays amid economic revival

India is on the verge of a multi-year capex cycle led by government-funded infrastructure, believe analysts, and prefer capex-related plays over consumption bets in the current market environment. Private Capex, they say, will boost growth beyond fiscal 2023-24 (FY24).

That apart, the decision to set up a government-owned development finance institution (DFI) that can leverage around Rs 3 trillion from the markets going ahead to provide long-term funds to infrastructure projects is an added advantage that will go a long way in boosting the prospects of the capex-related plays, feel analysts.

“We see India on the cusp of a multi-year capex cycle, similar to that in FY03-12. Our bottom-up analysis suggests $356 billion worth of projects could be awarded cumulatively in FY22-23,