The government on Tuesday increased the capital expenditure outlay by around 35 per cent to Rs 7.5 lakh crore in the financial year 2022-23, the finance minister Nirmala Sitharaman said in Budget 2022 speech in the Parliament, adding that the FY23 effective capex is seen at Rs 10.7 lakh crore. 

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In comparison, the capex target in FY22 was set at Rs 5.5 lakh crore. 

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“Acuité had highlighted earlier that the government will have a larger focus on public capital expenditure in FY23," Analyst Suman Chowdhury said.  

“The outlay for capex has been significantly enhanced by 35 per cent from Rs 5.5 lakh crore to Rs 7.5 lakh crore, which is more than double of the levels in FY20. This will continue boost the construction sector and generate jobs in the infrastructure sector,” Chowdhury added. 

With increase in capital expenditure, it is likely to provide a push to the affordable and rental housing ecosystem as well as bolstering existing infrastructure development for instance, roads, bridges, dams and others, Aprajita Saxena, Research Analyst at Trustline Securities said. 

So. infrastructure, reality and building material stocks can be kept in radar like KNR Construction, PNC infratech, PSP Projects, Sobha Limited, Godrej properties, Pidilite industries, Asian paints, Berger paints, Ultratech cement, ACC cement, Kajaria ceramics among others, Saxena said.