Tag: construction

The benchmark indices tumbled from record-high levels to snap their three-day winning run in a volatile session on Dalal Street, amid losses in RIL, IT stocks, and select banking counters. Despite a firm global market sentiment, the Indian indices settled in the red as profit-taking ensued following a steep rally in the indices which saw them hitting significant landmarks. After touching a record high of 59,737, the BSE barometer Sensex plunged 721 points from the high to end at 59,016, down 125 points. At the same time, its NSE counterpart Nifty50 settled the day 44 points down at 17,585. The 50-pack index had touched a record peak of 17,793 in the morning session. However, on the weekly basis, the benchmark indices gained, thus taking their winning run to the fourth straight week. Read more

Shares of JMC Projects rallied 19 per cent to Rs 93.90 on the BSE in intra-day trade on Tuesday after the company said it has signed an agreement with Fahi Dhiriulhun Corporation Limited (FDC) for the design, finance and construction of 2,000 social housing units in Hulhumale Island of Maldives for a project worth Rs 1,000 crore.JMC Projects share rose to a 52-week high of Rs 93.85, rising 19.63% against the previous close of Rs 78.45 on BSE. The financial closure of the project is expected to conclude soon and construction on the project will commence after the financial closure, it added. "The signing of the agreement with FDC is a landmark event in JMC's growth journey. The project is a milestone and testament to our ability to deliver major projects to the highest quality and within tight time frames. Our international business has expanded its presence further with this project in the Maldives. Read more

As the nationwide lockdown is easing in a phased manner liquidity crunch and a labour shortage are the two major constraints for the construction sector. Given this, companies that earn revenues from the tolling of projects and executing their own projects instead of pure construction companies are better placed than the pure-play construction companies. According to industry estimates, labour shortage is as high as 50% in the case of some construction projects. This has caused execution delays thereby increasing project costs, which will be borne by the construction companies. Analysts believe that companies that have the right balance of construction and build, operate, and toll projects, have limited downside in terms of cost escalation and loss of revenues. Read more