HUDCO, NBCC zoom up to 16% to fresh highs on budget boost to housing

The Interim Budget allocated Rs 80,671 crore for Pradhan Mantri Awas Yojana (PMAY)

Shares of Housing & Urban Development Corporation Ltd (HUDCO) and NBCC India jumped up to 16 percent each on February 2, a day after Finance Minister Nirmala Sitharaman in her Budget 2024 speech promised two crore houses to be developed over the next five years under the PM Awas Yojana (PMAY) Grameen.

"Despite the challenges due to Covid, implementation of PM Awas Yojana (Grameen) continued and we are close to achieving the target of three crore houses. Two crore more houses will be taken up in the next five years to meet the requirement arising from an increase in the number of families," the FM said.

The Interim Budget 2024 allocated Rs 80,671 crore for the Pradhan Mantri Awas Yojana (PMAY), up 49 percent from a revised estimate of Rs 54,103 crore in Budget 2023.

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HUDCO is a state-run company that provides financial assistance for housing and urban infrastructure development projects. Shares of HUDCO jumped over 10 percent in morning deals to hit a fresh record high of Rs 226.45 on the National Stock Exchange (NSE).

The stock is up around five times from its 52-week low of Rs 40.4, hit on March 29, 2023. The government currently holds a 75 percent stake in HUDCO.

In the last one year, the HUDCO share price has zoomed over 360 percent, more than quadrupling the investor income. In comparison, the benchmark Nifty 50 has risen around 24 percent in this period. In the last one month, the stock has rallied over 68 percent.

Shares of NBCC, which provides construction and engineering services for residential, commercial and institutional buildings, surged over 16 percent on February 2 to hit a fresh record high of Rs 167.80 on the NSE. The government currently holds a 61.8 percent stake in NBCC.

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In the last one year, the NBCC stock has delivered multibagger returns to investors, surging over 370 percent. It has doubled the investor wealth in the last one month.

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