Axis Bank has launched an infrastructure index called Axis Infra Index.

The index will interpret capital expenditure in the infrastructure sector, policy and regulatory framework and track developments associated with infrastructure projects that influence investor confidence in the sector.

Based on these observations, the index will reflect the sector's growth on a monthly basis.

Varadarajan Srinivasan, executive director (corporate banking), Axis Bank, says: "The AII is still evolving. In future it would track the sub-segments under the infrastructure space. These could be power, telecom, bridges or water."

The index intends to make the sector and its activities familiar to prospective investors in the infrastructure sector. By communicating the growth stage of the sector, the index interprets market trends that an institutional investor may not understand on his own.

Srinivasan adds: "Infrastructure financing involves projects with large outlays that have long gestation periods till revenue visibility. Therefore, operating in a complex regulatory and policy environment becomes difficult for investors who may not be familiar with it. So a composite metric like the AII is a summary that would enable him to interpret trends."