According to brokerage and research firm HDFC Securities, the growth in project awarding for road and highway development by NHAI and Morth can benefit companies like PNC Infra, KNR Infra, and NCC.
Companies like Larsen and Toubro (L&T), Siemens, and ABB engaged in the infrastructure and capital goods segment can also benefit from the growth in capex by the government and private companies.
"It is a commendable move to increase capital spending, especially on the railroads, as this might spur several additional private sector investments and boost income growth. This may be advantageous for the infrastructure, capital goods, and materials sectors. Due to borrowing estimates being within anticipated ranges, bond street is relieved, the note said.
Finance Minister Nirmala Sitharaman made the announcement during the budget statement on Wednesday. The rise in capital investment outlay has been boosted sharply for the third year in a row by 33% to Rs. 10 lakh crore, which would equal 3.3% of GDP. The Urban Infrastructure Development Fund, which the government would set aside Rs. 10,000 crore year for, will be utilised to build infrastructure in tier-2 and tier-3 cities.
Further, the capital outlay of Rs. 2.40 lakh crore that has been allocated for the Railways might assist businesses like IRCON, RVNL, and waggon manufacturing firms active in the building of railway infrastructure.
Sensex, Nifty, Share Prices Today: Domestic indices concluded Thursday’s volatile session on a mixed note. The BSE Sensex settled in green above 59,900 while NSE Nifty 50 ended in red below 17,650. The NSE Nifty 50 fell 5.90 points or 0.03% to 17,610.40 and NSE Nifty 50 rose 224.16 points or 0.38% to 59,932.24. Britannia, ITC, IndusInd Bank, Hindustan Unilever and Infosys were the top gainers while Adani Enterprises, Adani Ports, UPL, HDFC Life nd Eicher Motors were the losers.
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