Cement stocks up 6.22 pc after Budget boost

The shares of JK Lakshmi Cement went up 6.22 per cent to Rs 781.70. Birla Corp increased by 4.33 per cent to Rs 945.85. Indian Cements added 3.57 per cent to Rs 200.20.

By 1.45 pm, 26 listed cement stocks were trading higher on the BSE. UltraTech Cement, Heidelberg, and Nuvoco were some cement stocks that rose more than 1 per cent after the Budget announcements.

Shares of cement makers went up after Finance Minister Nirmala Sitharaman announced the highest ever capex outlay and also increased capex outlay for Pradhan Mantri Awas Yojana.

The shares of JK Lakshmi Cement rose by 6.22 per cent to Rs 781.70. Birla Corp rose by 4.33 per cent to Rs 945.85. Indian Cements had a 3.57 per cent increase in Rs 200.20. The Ramco Cements, Shree Cement and Orient Cement gained up to 3 per cent. Ultratech Cement, Heidelberg and Nuvoco were some other cement stocks that rose more than 1 per cent after the Budget announcements.

This is a gain of 437.11 points, or 0.73 per cent, in the BSE benchmark Sensex, which was cited at 59,987. By 1.45 pm, 26 listed cement stocks were trading higher on the BSE.

Finance Minister Nirmala increased the FY 24 Capex outlay by 33 per cent to Rs 10.5 lakh crore. While the government was expected to continue with capex momentum, the 33 per cent jump has come in as a surprise, according to analysts.

The outlay for PM Awas Yojana has been increased by 66 per cent to over 79,000 crore.

The capex has been increased by 30 per cent to almost 10 lakh crore. PMS provider Green Portfolio said that the capex boost will benefit cement stocks and will give them a boost in 2019, which is 3 per cent of GDP and 3 times of the amount spent in 2019.