Shares of Ashoka Buildcon, KNR Constructions, Ramky Infrastructure and other construction and infra development-related firms surged up to eight percent on July 24, a day after Finance Minister Nirmala Sitharaman announced significant funds for several major infrastructure projects, particularly in road connectivity.
FM announced the Patna-Purnea Expressway, Buxar-Bhagalpur Expressway, Spurs in Bodhgaya, Rajgir, Vaishali, and Darbhanga. An additional 2-lane bridge over the river Ganga at Buxar was also announced. These projects will be developed at a total cost of Rs 26,000 crore.
The Budget also includes plans for new airports, medical colleges, and sports infrastructure in Bihar, alongside a provision of Rs 2.66 lakh crore for rural development, including rural infrastructure.
Additionally, FM announced that the government will develop investment-ready "plug and play" industrial parks in or near 100 cities, in collaboration with states and the private sector, through improved town planning schemes. 12 industrial parks will be sanctioned under the National Industrial Corridor Development Programme.
Also Read | Jewellery stocks shine on as customs duty on gold slashed in Budget 2024
The capex outlay for infrastructure at Rs 11.1 lakh crore in Union Budget remained unchanged from the interim budget's capex target pegged in February. However it is around 17 percent higher from the previous year's Budget and represents 3.4 percent of GDP.
According to Nuvama, the tepid growth in capex outlay is disappointing for companies in the roads and water segments.
On the other hand, continued focus on rail capex, rolling stock procurement shall aid companies such as Titagarh Rail, BEML and Texmaco Rail. A pickup in capex in Andhra Pradesh would benefit NCC and KNR Constructions, it said.
Buoyed by these announcements, shares of Kalpataru Projects, Skipper India, Tarc, Man Infraconstruction, Ashoka Buildcon, KNR Constructions and Ramky Infrastructure gained up to eight percent.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
