NBCC shares gain almost 10 per cent as PM Modi launches smart city project

MUMBAI: Shares of National Buildings Construction Corporation surged nearly 10 per cent today as Prime Minister Narendra Modi unveiled three mega flagship urban schemes with a major thrust on housing.

NBCC's stock jumped 9.68 per cent to end at Rs 881.90 on the BSE. During the day, it surged 11.31 per cent to Rs 895.

At NSE, shares of the company gained 9.6 per cent to settle at Rs 882.30.

"NBCC shot up by more than 10 per cent amidst high volumes as the government launched the project to build smart cities and launched other urban renewal schemes," said Hiren Dhakan, Associate Fund manager, Bonanza Portfolio Ltd.

Stocks of mortgage lenders were also in demand as HDFC rose by 2.20 per cent, Dewan Housing surged 2.46 per cent and LIC Housing gained 0.55.

"...announcement of three flagship schemes related to housing tops a bright day for equity market," said Anand James, Co Head Technical Research Desk at Geojit BNP Paribas.

Urbanisation should be viewed as an opportunity and urban centres should be viewed as growth engines, Modi said while launching the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Smart Cities Mission, and Housing for All (Urban) here.

While 500 cities will be developed under AMRUT scheme, there would be 100 Smart Cities over five years and Housing for All aims construction of 2 crore houses in urban areas in the next seven years.

The BSE index, Sensex, closed at 27,895.97, up 166.30 points.