Budget 2023-24: Metal, cement stocks gain on sharp increase in capital outlay

India's migrant workers neither get featured at the annual Pravasi Bharatiya Divas nor are their concerns discussed. (Representative image)

Shares of cement and metal manufacturers gained after Finance Minister Nirmala Sitharaman announced a 33 percent increase in capital investment outlay to Rs 10 lakh crore in her Union Budget 2023-24.

This higher capital expenditure announcement will boost key EPC players involved in segments such as road EPC, water and urban development. This announcement also augurs well for the demand of building and construction materials.

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An increase in infrastructure spending will be a positive for steel and aluminium producers along with cement manufacturers, market participants said.

At 12.05 pm, the Nifty Metal was up 0.5 percent with Jindal Steel & Power, Tata Steel, Hindalco Industries, Ratnamani Metals & Tubes and JSW Steel rising 1-4 percent.Follow our live blog for the latest Budget 2023 updates 

The BSE Metal index also rose over a percent. Shares of JK Lakshmi Cement, Orient Cement, Ramco Cements, Shree Cement were up 2-4 percent.

Sitharaman emphasised that infrastructure, investment and green growth were among the seven priorities and added that investments in the infrastructure space will have a multiplier effect on the Indian economy.

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Market participants said that the government’s continued focus on infrastructure is seen as promoting the building material industry.