New Delhi, Feb 1 (SocialNews.XYZ) A strong capital expenditure announced in Union Budget FY23 coupled with renewed focus on the affordable housing segment have led to a sharp jump in share prices of companies associated with infrastructure, realty, cement and steel and other commodity-focused businesses.
The shares of infrastructure company Larsen & Toubro rose over 4 per cent, whereas realty major DLF rose over 3 per cent.
Steel maker JSW Steel rose nearly 4 per cent, whereas the Steel Authority of India rose 5 per cent.
In the cement space, Shree Cement rose 5 per cent, ULtraTech Cement 4 per cent, Ambuja Cement 4 per cent, and The Ramco Cements over 3 per cent.
The stocks of Housing finance company Aavas Financiers rose 6 per cent.
"The Central government will work with the state governments for reduction of time required for all land and construction-related approvals, for promoting affordable housing for middle class and economically weaker sections in urban areas," Finance Minister Nirmala Sitharaman said in her Budget speech.
The Centre shall also work with the financial sector regulators to expand access to capital along with reduction in cost of intermediation, she added.
To sustain high growth rate, the Centre has earmarked a massive budgetary outlay of Rs 7.50 lakh crore for FY23.
In her Budget speech, Nirmala Sitharaman proposed to increase the capital budget outlay by over 35 per cent year-on-year.
"The outlay for capital expenditure in the Union Budget is being stepped up sharply by 35.4 per cent from Rs 5.54 lakh crore in the current year to Rs 7.50 lakh crore in 2022-23," Sitharaman said.
"Overcoming the temptation to garner some votes through populist proposals, the Finance Minister has presented a visionary economic document to boost economic growth. By increasing the capex by 35.4 per cent to 7.5 lakh crore, thereby targeting an effective capex of 10.7 lakh crore, the government has declared that it would be doing the heavy lifting to achieve 8 to 8.5 per cent GDP growth in FY 23," said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Vijayakumar said the government has balanced growth with welfare programmes for the poor with Rs 48,000 crore allocated for PM Awas Yojana and Rs 6,0000 crore for tap water connection to 3.8 lakh poor households.
"In brief, (this is) a non-populist growth oriented Budget," he added.
According to Anuj Puri, Chairman, ANAROCK Group: "Providing a broad-spectrum booster shot to the economy, Union Budget 2022-23 is progressive -- especially with its emphasis on building the infrastructure of the country.
"The Finance Minister clearly emphasised the top priorities of the government - PM Gati Shakti for sustainable growth, inclusive development, productivity enhancement, and financing of investments."
The rise in capex is a positive for long steel and pipe manufacturers, said Priyesh Ruparelia, Vice President and Co-Group Head, Corporate Ratings, at ICRA.
"Moreover, focus on Aatmanirbharta, especially in defence and solar module manufacturing, remains incrementally positive for domestic steel demand. On the raw material side, the extension of Customs duty waiver on ferrous scrap in FY2023 is a welcome development for secondary steel manufacturers," Ruparelia added.
However, withdrawal of antidumping and countervailing duty protection on certain stainless steel and coated steel products remain the only negatives that have been announced on Tuesday, Ruparelia added.
Source: IANS
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