Shares of cement and infrastructure stocks were in demand after Finance Minister Nirmala Sitharaman sharply increased the outlay on capital expenditure for 2022-23 in the Union Budget presented on February 1.
The finance minister fixed the outlay on capital expenditure for next year at Rs. 7.5 lakh crore, which was sharply higher than the Rs 5.5 lakh crore budgeted for 2021-22.
The finance minister said that the capital expenditure outlay for the next financial year will be 2.9 percent of India's GDP.
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Analysts had expected the government to hike the capital expenditure outlay by 20 percent, whereas Budget 2022 has hiked the expenditure by 35 percent.
The large capex outlay is seen as a major boost for infrastructure companies as it will boost their order books going ahead because of greater government project tendering activity.
Shares of Siemens, Larsen & Toubro, Adani Ports and Container Corporation of India were higher by 2-4 percent.
Cement companies also got a major lift from the higher spending on public investment and on affordable housing. The government allotted Rs 48,000 crore for housing projects under the affordable housing scheme.
Shares of Ramco Cements, UltraTech Cement, Ambuja Cements, and Shree Cement were up 2-4 percent.
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