Infra cos shares rally after FM lists infrastructure among 7 priorities of Union Budget

Budget 2023: Shares of infrastructure companies, including Larsen & Toubro rallied up to 4 per cent on Wednesday after Finance Minister Nirmala Sitharaman listed infrastructure as one of the seven priorities of Union Budget 2023-24.

Labourers work at a construction site of a metro rail station in Kolkata, India July 2, 2018. Pic: Reuters

Budget 2023: Shares of infrastructure companies, including Larsen & Toubro rallied up to 4 per cent on Wednesday after Finance Minister Nirmala Sitharaman listed infrastructure as one of the seven priorities of Union Budget 2023-24.

Siemens Ltd stock jumped 4 per cent on the BSE, HG Infra Engineering surged 3.32 per cent while the scrip of Larsen & Toubro gained 1.57 per cent.

Besides, KNR Constructions stock gained 2.97 per cent, Ashoka Buildcon 1.21 per cent and IRB Infrastructure Developers 0.05 per cent.

Jyoti Bhandari, Founder and CEO, Lovak Capital said, "Budget 2023 brings out 7 priorities to aim inclusive growth in both rural and urban economy. FM woos hardworking middle class by proposing tax exemption up to 7 Lakhs. An Individual with an annual income of 9 Lacs would pay only 5% and 15 Lacs would pay 10% of taxes. Reduction of maximum tax rates to 39% by reducing higher surcharge. Policies and incentives for entrepreneurship in rural areas to boost rural economy and push towards public private partnership."

In her Budget presentation, the finance minister said infrastructure growth has been offering multiplier effects in the economy. Under the National Infrastructure Pipeline (NIP), over 89,151 projects worth Rs 141.4 lakh crore are under various stages of implementation.

The minister said that enhanced capex of Rs 10 lakh crore for infrastructure development is 3.3 per cent of the GDP.

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