Budget 2023 Impact: Infrastructure-related stocks zoom on FM’s announcement to hike capex by 33% for next fiscal

The infrastructure-related stocks zoomed during Wednesday’s session on the finance minister Nirmala Sitharaman’s announcement to increase the capital expenditure in the financial year 2023-24 (FY2).

While presenting her sixth budget for 2023-24, Sitharaman announced a hike in capital expenditure by 33 per cent to Rs 10 lakh crore for infrastructure development for 2023-24 and will be at 3.3 per cent of the GDP. Catch LIVE Budget 2023 updates here

From construction material categories, stocks such as Borosil Renewables was up around 8.5 per cent, followed by JK Lakshmi Cement up 5 per cent, Birla Corporation up over 4.5 per cent, India Cements up 4 per cent, and Dalmia Bharat up 3 per cent among others.

Similarly, electrical as well as iron and steel segments' stocks like Jindal Stainless was up over 5.5 per cent, Motherson Sumi Wirings up around 5 per cent, KEI Industries up 4.5 per cent, Polycab India up over 4 per cent among others.

While other infrastructure-focused stocks such as L&T, Shree Cement, IRCTC, Concor, Indian Hotels, Bharti Airtel, DLF and Godrej Properties also traded firm in the green.

The finance minister while presenting the Budget 2023 said the newly established infrastructure finance secretariat will assist in attracting more private investment.

An expert committee will also be set up to make infrastructure classification and financing framework suitable for Amrit Kaal, she added.

Anand Rathi Group Founder & Chairman Anand Rathi – a veteran market expert – said, “A 33 per cnt increase in capital expenditure to 10 lakh crore rupees, the highest ever will go a long way in building roads, ports, and airports — crucial for making India a reliable investment destination.”

Similarly, He added, “Boost to capex before the national polls is an indication Modi is focused on realizing his dream of making India a factory for the world."