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Budget 2018: Govt's infra theme may benefit construction, metal, cement stocks

The infrastructure related stocks including construction, metal and cement stock will benefit from the government infrastructure development theme.

In Budget 2018 the government continued to put more focus on infrastructure development as they allocated Rs 5.97 lakh crore towards the infrastructure development.

The infrastructure related stocks including construction, metal and cement stock will benefit from the government infrastructure development theme.

Finance Minister Arun Jaitley has allocated an extra-budgetary support of Rs 5.97 lakh crore against Rs 3.96 lakh crore in the budget 2018 for the infrastructure sector. Construction companies like KNR Construction, J Kumar, NCC to play infrastructure theme from the budget.

India Union Budget 2018-19 Live: News, updates and highlights from FM Arun Jaitley's Budget 2018 speech, announcements
According to Rakesh Tarway, Head Research, Reliance Securities, "Budget 2018 continued to put a strong focus on infrastructure development, which is in line with the expectations. FM has allocated an extra-budgetary support of Rs 5.97 lakh crore for the infrastructure sector, which is encouraging as India needs a large amount of investment in infrastructure due to growing needs."

The higher allocation in infrastructure segment will essentially expedite infrastructure development in the country, which in turn will aid many industries i.e. metals, cement, building materials, etc.

They like construction companies KNR Construction, J Kumar, NCC to play infrastructure and cement companies like JK Cement and Sagar Cement to benefit from push to infra.

Manish Nuwal, MD & CEO at Solar Industries India said, "Allocating Rs 5.97 lakh crore to improve India’s infrastructure is a firm step towards bringing it at par to Asian levels."

"We see rising demand for industrial explosives due to encouraging measures such as the target to complete construction of 9,000 km of national highways this year by the NHAI."

“On the infrastructure front, the Finance Minister has shown remarkable restraint, and therein lies the brilliance of his announcements. India is at the cusp of an infrastructure revolution, and the budgetary support of Rs. 5.97 lakh crore for FY19 will be a big positive for the sector and supplementary industries such as cement," said Yadupati Singhania, CMD, JK Cement.

Dinesh Rohira, Founder & CEO, 5nance.com said, "With government allocating over Rs. 1.48 lakh crore for railway projects and Rs. 14.34 lakh crore for rural infrastructural spread across various scheme under its infrastructural theme, the company engaged in construction and housing segment coupled with company engaged in railway and road project is expected to get boost."

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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