India's infrastructure index hits record high on budget boost

KNR Constructions

02/02/2021 05:17

** Shares of India's infrastructure companies jump, with sub
index  .NIFTYINFR  rising as much as 3.3% to hit record high
    ** Indian Finance Minister Nirmala Sitharaman proposed a
slew of infrastructure projects on Monday  urn:newsml:reuters.com:*:nL4N2K71FO
    ** Budget allocated 1.18 trln rupees ($16.17 bln) for
ministry of roads and highways, 1.1 trln rupees ($15.07 bln) for
railways  
    ** India will allocate 3 trln rupees ($41.10 bln) for power
sector for next five years, 2.87 trln rupees ($39.40 bln) for
clean water supplies
    ** Government will also extend tax holiday on low cost
housing projects for one more year
    ** Announcement of higher public sector capital expenditure
is positive for infrastructure, cement and auto cos, UBS
analysts said in a note
    ** Increased infrastructure construction activity will
further support rural economy - UBS
    ** Larsen & Toubro  LART.NS  is leading gains in Nifty
infrastructure sub-index with 5.6% rise, Ultratech Cements
 ULTC.NS , Ambuja Cements  ABUJ.NS , ACC Ltd  ACC.NS , Grasim
Ltd  GRAS.NS  up 3% to 5%
    ** Shares of infrastructure development cos HG Infra
Engineering  HGIN.NS  rise 3.5%, Ashoka Buildcon  ABDL.NS  up
1.5%, KNR Constructions  KNRL.NS  surge 10%
    ** Nifty auto sub-index  .NIFTYAUTO  rose 3.45%  urn:newsml:reuters.com:*:nL4N2K816P

 (Reporting by Nallur Sethuraman in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))