Construction cos surge after RBI eases liquidity

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Construction cos surge after RBI eases liquidity

Shares of heavy engineering and construction companies surged anything between 1-4% on hopes that more liquidity will be available for them in the market to borrow after the Reserve Bank of India (RBI) cut cash reserve ratio (CRR) by 50 basis points.

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Moneycontrol Bureau

Shares of heavy engineering and construction companies surged anything between 1-4% on hopes that more liquidity will be available for them in the market to borrow after the Reserve Bank of India (RBI) cut cash reserve ratio (CRR) by 50 basis points.

This move will infuse atleast Rs 32,000 crore into the system, said RBI. The CRR is the amount against deposits which commercial banks have to keep as liquid assets such as cash which has been lowered to 5.5%.

Meanwhile, , HCC surged 3% to Rs 22.15, Gammon India climbed 2% to Rs 46.40, and Siemens also rose marginally to Rs 750.30 on hopes that they will be able to enhance their expansion plans after having access to additional liquidity infused by the apex bank.