Budget 2022: Infrastructure Stocks Rise On Government's Plans To Hike Spending
Shares of construction firms rose after Union Budget proposed to expand the highways network by 25,000 kilometer in 2022-23.
Shares of construction and infrastructure developers rose after the Union Budget 2022 proposed to expand India's highways network by 25,000 kilometres in 2022-23.
In her budget speech, Finance Minister Nirmala Sitharaman announced that the PM Gati Shakti Master Plan for Expressways will be formulated in 2022-23 to ensure facilitation of faster movement of people and goods.
The minister also said that Rs 20,000 crore will be mobilised through "innovative ways of financing" to complement public resources. The plan will also include infrastructure developed by state governments, with focus on planning and financing. The plan aims to utilise synergies between modern infrastructure and logistics to accelerate growth and raise productivity.
Shares of firms like Dilip Buildcon Ltd., PNC Infratech Ltd., Ashoka Buildcon Ltd. and KNR Constructions Ltd. advanced following the announcement.
The additional allocation of Rs 60,000 crore to increase the coverage of the 'Har Ghar Nal Se Jal' programme, which aims to provide tap water to 3.8 crore households in 2022-23, aided firms like VA Tech Wabag Ltd., which is involved in water and sewage treatment, as well as plastic pipe makers like Supreme Industries Ltd., Finolex Industries Ltd. and Astral Ltd.
