Loss of Card
How to use
Non- Axis Bank
Bank Tie Ups
By Banking Channel
Capital Market Services
Get a concise and intelligent guide to opportunities
across the infrastructure sector
Index Construction Approach
Trends and Issues
Features and Benefits
Having backed some of India's most illustrious Infrastructure projects in sectors such as power, roads, airports and ports, Axis Bank has taken its expertise in Infrastructure Financing to the next level with the launch of the Axis Infra Index report, a concise and intelligent guide to opportunities across the infrastructure sector.
The Axis Infrastructure Index is designed to capture evolving fundamentals of Indian Infrastructure summarising the investment climate in infra segments. The Axis Infrastructure is the first of its kind in India, intended to facilitate interpretation of capex, financial, policy, regulatory, tax and other associated developments which influence investor confidence.
Update, May 2012 | Axis Infra Index : 386.3
The Axis Infra Index (AII) had increased (to 386.3) in March 2012, after trending down over the first half of 2011 and troughing in November 2011. However, the AII was still down 32% yoy, indicating weak and stressed operating conditions over FY12. In Wholesale Price Index (WPI) inflation adjusted terms, too, the Axis Infra Index rose by a similar magnitude in March (these trends are shown in Chart 1 below). Part of this increase can be attributed to a seasonal jump in March, but there were other factors at play as well. On a QoQ 3M average basis, the AII rose by 20% in March.
Chart 1: Axis Infra Index
In terms of the contribution of Index constituents of the AII , the rise in the March Index reading was primarily driven by funds flows and projects completions (trends in the components of the Axis Infra Index are shown in Chart 2 below). The larger weight of funds flows in the AII (see Annexure on the details of the AII below) has contributed to the uptick.
Funds Flows: Bank credit to infrastructure sectors had increased by Rs 12,671 cr in March (v/s Rs 16,800 cr in December and Rs 5,159 cr in February). As is year-ends, there was a surge in debt placements during the March quarter. Between Dec-Mar’12, private debt placements rose by Rs 14,612 cr (compared to Rs 5,013 cr during Sep-Dec’11 quarter and Rs 4,755 cr in the Mar’11 quarter). There was one IPO of Rs 125 cr from NBCC Ltd, as part of the Govt disinvestment program.
Project Commencements: The Projects Commencement Index rose significantly in March, by almost 28% qoq, with Rs 49,825 cr worth of projects completed / starting operations, but are probably reflective of a cumulative process over the previous few months. FY12 was the last year in the XI Five Year Plan, which may have led to a bunching of project completions and not indicative of underlying trends. Some of the larger projects completed in March were Sterlite’s Jharsuguda Coal Fired Power Project Phase I (Rs 10,500 cr), Jhajjar Power Project (Rs 6,000 cr), NTPC’s Simhadri Power Expansion Project Phase II (Rs 5,038 cr) and GAIL’s Dadri-Bawana-Nangal Gas Pipeline Project (Rs 2,357 cr).
Output Indicators: Indicators like power generation, ports throughput, cement dispatches, etc., are used as proxies for the output of the major infrastructure sectors, reflecting operations in infra segments. As is the case each March, the “Output Indicators” index spiked higher. Main contributors were cement despatches, and port throughput. Though power generation rose sequentially, the rise was not significant as seen in prior year-ends.
Chart 2: Movements in the components of the Axis Infra Index
Table: Measurable components of Axis Infra Index
Policy Environment: The RBI and Government have taken the first steps in reversing its tight monetary policy, announcements of certain incremental policy measures in easing bottlenecks (including initiatives on coal supplies), suggesting that the AII might be supported by the capture of these measures in the policy component in the next update as increasing clarity is obtained on the actual implementation of these and earlier measures. However, there still remain uncertainty in the regulatory framework, particularly for telecom spectrum auctions.
The Annexure in the following page provides a brief summary of the methodology of the construction of the Axis Infra Index.
Components of the Index
The primary objective of the Index is to convey a sense of investment conditions in infra sectors and the ability of the segment to draw in capital funds. Therefore, the Index places inordinate weight on funds flows, which after all, is the ultimate outcome of all the underlying conditions, the efficiency in commissioning projects, the regulatory environment, tax incentives, etc.
April 2005 is chosen as the base year, with the values of the Index components normalised to 100 for the month. This choice is consistent with many key macroeconomic variables using 2004-05 as their base year.
Determining the weights of Index components: The AII is constructed from the above five indicators using principal component analysis (PCA). Simulations show that the AII remains relatively robust to the relatively minor weighting changes.
Eligibility and Documentation
Fees and Charges
Capital Market Funding
At your request , you are being redirected to a third party site. Please read and agree with the disclamer before proceeding further.
This is to inform you that by clicking on the hyper-link/ok, you will be accessing a website operated by a third paty namely http://i3.oximall.com/axisbank. Such links are provided only for the Client and Axis Bank does not control or endorse such websites, and is not responsible for their content. The use of such websites and would take precedence over the terms and conditions of usage of www.axisbank.com in case of conflict between them . any actions taken or obligations created voluntarily by the person(s) accessing such websites shall be directly between such persons and the owner of such websites and Axis Bank shall not be responsible directly or indirectly for such actions so taken. Thank you for visiting www.axisbank.com
Select your service provider
At your request, you are being redirected to a third party site. Please read and agree with the disclaimer before proceeding further.
This is to inform you that by clicking on the hyper-link/ok, you will be accessing a website operated by a third party namely mybustickets.in. Such links are provided only for the convenience of the Client and Axis Bank does not control or endorse such websites, and is not responsible for their contents. The use of such websites would be subject to the terms and conditions of usage as stipulated in such websites and would take precedence over the terms and conditions of usage of www.axisbank.com in case of conflict between them. Any actions taken or obligations created voluntarily by the person(s) accessing such web sites shall be directly between such person and the owner of such websites and Axis Bank shall not be responsible directly or indirectly for such action so taken. Thank you for visiting www.axisbank.com
Please use 'axisbank' as user name and password on the next page
Get offers only on
Axis Bank Car Loan
Choose from different types of travel insurance and be assured of coverage for each of your trips.
Ensure smooth, reliable payment settlements via cards, with Electronic Data Capture (EDC) terminals.
Meet all collection needs like cheques, cash and electronic transfers with our Power Collect products.