Realty stocks gained gains following the Budget 2024 announcements, which included an increased outlay under the PM Awaas Yojna and a focus on stamp duty relief for women ownership.
Following the announcement, Ajmera Realty rose by more than 4 percent, Prestige Estates was up over 3 percent, Sobha, Macrotech Developers (Lodha), Godrej Properties, Oberoi Realty, and Sunteck Realty also gained up to 3 percent.
Related stocks including Repco Home Finance, NCC, Can Fin Homes, India Shelter Finance Corporation rose up to 2 percent each. Star Housing Finance Ltd rose more than 5 percent, while Manraj Housing Finance, SRG Housing Finnace and Reliance Home Finance rose to hit the upper circuit limit after the announcements.
In the Budget, the Finance Minister announced plans to construct 1 crore houses for the urban poor and an additional 3 crore houses across both rural and urban areas. FM also allocated Rs 10 lakh crore for rental housing.
"This allocation is a significant boost to the real estate sector and is in line with the objective of building 3 crore houses across urban and rural areas. This will lead to creation of infrastructure in satellite cities and a huge impetus for job creation," said Piyush Gupta, Managing Director, Capital Markets & Investment Services, Colliers India.
FM kept the capex outlay unchanged at Rs 11.11 lakh crore, the same as was earmarked in February. This is higher than last year’s revised estimate of Rs 9.5 lakh crore.
The government will end up spending 3.4 percent of the Budget on capex compared with 3.2 percent in the previous year, and almost double what it spent five years ago. The growth in capex has stayed in double digits in six of the last seven years.
"The capex target of FY25 is unchanged from what was announced in the interim budget in February. No change in capex outlay is a major positive and shows the government's resolve to balance both the infrastructure development and populism of coalition politics," said Apurva Sheth, Head of Market Perspectives & Research, Samco Securities.
The government's emphasis on affordable housing and digital infrastructure improvements is set to drive growth in Tier 2 and Tier 3 cities, promoting homeownership and urban development.
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