Infra, construction stocks rally upto 8 percent after govt aims to expand national highway
Published On: Tuesday, February 1, 2022 | By: Team KnowMyStock
Infrastructure and construction stocks gained higher intraday on February 1, after Finance Minister Nirmala Sitharaman in her Budget speech said the Union government aims to further grow highway networks in the country by 25,000 km in FY23. PM Gati Shakti will encompass the seven engines for multi-modal connectivity for the states with speedier implementation of development projects through technology to facilitate faster movement of people and goods through Rs 20,000 crore financed by the govt to speed up this project," the FM said in her Budget speech in the Parliament. The government is also going to add more Vande Bharat trains, she said. Execution of national highway projects has been one of the highlights of the Narendra Modi-led government, and companies will hope for higher tendering activity from the National Highways Authority of India (NHAI) in the next financial year.
“Higher spend on infrastructure, especially higher allocation for road construction auger well for infra contractors,” said Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities.
Following the announcements, PNC Infratech(up 6.61 per cent), KNR Constructions (up 4.51 per cent), NCC (up 4.14 per cent), IRB Infrastructure Developers (up 4.11 per cent), DBL (up 3.86 per cent), GMR Infrastructure (up 3.68 per cent), Tata Power Company (up 3.31 per cent), Interglobe Aviation (up 2.84 per cent), Sadbhav Engineering (up 2.75 per cent) and NBCC (India) (up 2.57 per cent) were among the top gainers.
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