Budget 2023: Booster shot for L&T, other infra cos as capital outlay hiked to Rs 10 lakh crore
However, IRB Infrastructure Developers, Hindustan Construction Co, ITD Cementation, KNR Constructions, Gayatri Projects, ARSS Infrastructure, and Dilip Buildcon fell amid weak market
By Vidya Sreedhar, ETMarkets.com | Updated:
Agencies
Shares of infrastructure and construction companies zoomed in trade after the Budget for FY24 increased the capital outlay for the sector more than expected by 33% to Rs 10 lakh crore.
This is almost 3 times higher than the outlay made in the 2019-20 Budget, Finance Minister Nirmala Sitharaman said.
“Based on the framework of inclusive development and infrastructure play, the Union Budget 2023- 24 has laid the roadmap for a sustainable long-term economic pathway. The infra development will boost private investment and spur employment generation,” said Vishal Kampani, non-executive vice chairman of JM Financial.
Shares of Larsen & Toubro, often referred to as the proxy of India’s infrastructure story, ended 1% higher at Rs 2,146.
“The Union Budget has delivered on all fronts such as substantially higher allocation for capital expenditure, measures to provide impetus to the manufacturing sector, especially MSMEs…To summarise, it is a well-balanced budget with something for everyone and no obvious negatives.” said Jaideep Arora, CEO, Sharekhan by BNP Paribas.
However, IRB Infrastructure Developers, Hindustan Construction Co, ITD Cementation, KNR Constructions, Gayatri Projects, ARSS Infrastructure, and Dilip Buildcon fell amid weak market.
“In keeping with its focus on inclusive growth, the Union Budget has hiked outlays on Infrastructure and Agriculture which in our view, would have a force multiplier impact on the economy,” said S Ranganathan, head of research at LKP Securities.
According to Sandeep Upadhyay, managing director – Infrastructure Advisory Centrum Capital,
the budget has further emphasised on the need of raising long term capital through municipal bonds and setting up a new fund, UIDF.
This is keeping in mind the funding needs, specifically in the urban infrastructure sector and for municipal services.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
This is almost 3 times higher than the outlay made in the 2019-20 Budget, Finance Minister Nirmala Sitharaman said.
“Based on the framework of inclusive development and infrastructure play, the Union Budget 2023- 24 has laid the roadmap for a sustainable long-term economic pathway. The infra development will boost private investment and spur employment generation,” said Vishal Kampani, non-executive vice chairman of JM Financial.
Shares of Larsen & Toubro, often referred to as the proxy of India’s infrastructure story, ended 1% higher at Rs 2,146.
“The Union Budget has delivered on all fronts such as substantially higher allocation for capital expenditure, measures to provide impetus to the manufacturing sector, especially MSMEs…To summarise, it is a well-balanced budget with something for everyone and no obvious negatives.” said Jaideep Arora, CEO, Sharekhan by BNP Paribas.
However, IRB Infrastructure Developers, Hindustan Construction Co, ITD Cementation, KNR Constructions, Gayatri Projects, ARSS Infrastructure, and Dilip Buildcon fell amid weak market.
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“In keeping with its focus on inclusive growth, the Union Budget has hiked outlays on Infrastructure and Agriculture which in our view, would have a force multiplier impact on the economy,” said S Ranganathan, head of research at LKP Securities.
According to Sandeep Upadhyay, managing director – Infrastructure Advisory Centrum Capital,
the budget has further emphasised on the need of raising long term capital through municipal bonds and setting up a new fund, UIDF.
This is keeping in mind the funding needs, specifically in the urban infrastructure sector and for municipal services.
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“This fund shall catalyse the investments required in urban infrastructure projects specifically in Tier-2 and tier-3 cities,” Updahyay said. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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