Over 50 stocks, excluding PSU banks, can benefit from the Budget announcements
Healthcare, insurance, banking & financials, textile, auto, oil & gas and agriculture among other sectors also seen included in the growth-oriented budget. Sunil Shankar Matkar
Representative image (PC- MoneyControl.Com)
The Union Budget 2021 presented by the Finance Minister Nirmala Sitharaman is really a big game changer in terms of economic revival in India, especially post the COVID-19 damage, experts feel.
The government has estimated fiscal deficit at 6.8 percent of GDP in FY22 and 9.5 percent in FY21. The Budget increased the capital expenditure by 35 percent for FY22 over FY21 to revive the economy, and largely focussed on infrastructure (including roads, railways, National Infrastructure Pipeline, ports, power etc).
Read more about Road & highway construction firms rally up to 13% on infra push in Budget on Business Standard. The Finance Minister announced an allocation of Rs 1.18 trillion for the Ministry of Road Transport and Highways
Budget: Construction biz stocks gain up to 14 per cent
PTI
New Delhi |
Updated on
February 01, 2021
× Shares of companies related to construction business zoomed up to 14 per cent on Monday after the Budget for 2021-22 enhanced the allocation for highways sector to ₹1.18 lakh crore.
NCC Limited jumped 13.75 per cent, Ashoka Buildcon gained 10.98 per cent, KNR Constructions 10.02 per cent and Dilip Buildcon 4.12 per cent on BSE. Allocating an enhanced outlay of ₹1.18 lakh crore for the highways sector for 2021-22, Finance Minister Nirmala Sitharaman on Monday said the execution of flagship highways corridors as well as projects are bound to speed up. An allocation of ₹91,823 crore was made to highways for 2020-21, which was revised to ₹1.01 lakh crore.
No tinkering with the direct taxes, capital gains taxes or security transaction tax, and no announcement of Covid tax on super-rich left bulls untamed at the bourses who managed to entirely reverse previous week s losses and clock the sharpest-ever Budget rally, in absolute terms, on Monday. Besides, Finance Minister Nirmala Sitharaman s focus on disinvestment, increased FDI exposure for the insurance sector, and a cleanup plan for stressed assets were among a few of the other confidence-boosting measures. Overall, the market capitalization of the BSE-listed companies increased by Rs 6.78 trillion to Rs 192.9 trillion on Monday with 2,315 points, or 5 per cent, gain in the S&P BSE Sensex, which closed at 48,601 level. In the intra-day trade, the index zoomed nearly 2,500 points, hitting a high of 48,764.
Funding avenues for infrastructure multiplied
Keerthi Sanagasetti
BL Research Bureau |
Updated on
February 01, 2021
The FM continued to play on the infrastructure theme in this budget as well. The most notable announcement was the proposal to set up the much awaited Development Financial Institution (DFI). The FM promised to infuse equity of ₹20,000 crore, into the DFI, and is expected to provide funding of ₹5-lakh crore , within three years. Besides, notified infrastructure debt funds will now be eligible to raise funds by issuing tax efficient zero coupon bonds.
These moves, aimed at increasing the funding sources for the projects lined up under the ambitious National Infrastructure Pipeline (now 7,400 projects), are a welcome move for the companies in this space. These measures, coupled with the 34 per cent increase in the capital expenditure outlay in FY22 (over the budgeted estimate of FY21) to ₹5.54-lakh crore, could imply significant order inflows for infrastructu