The capital goods index bounced back 2.5 per cent from its intra-day low of 33,694. In comparison, the S&P BSE Sensex was up 0.88 per cent at 60,076 at 12:05 PM.
"The Centre will hike the capex outlay for 2023-24 by 33 per cent to Rs 10 trillion," Finance Minister Nirmala Sithraman said on Wednesday. In her Budget 2023 speech, she also said that the outlay for the PM Awas Yojana will be hiked by 66 per cent to Rs 79,000 crore. The Centre has also identified 100 critical transport infrastructure projects for implementation. CLICK HERE FOR FULL REPORT
Following the announcement, Siemens surged 5 per cent to Rs 3,070 on the BSE in intra-day trade. On the other hand, Larsen & Toubro (L&T) gained 2.5 per cent to Rs 2,177.85, bouncing back nearly 5 per cent from its intra-day low of Rs 2,082.
"L&T is the best proxy for domestic capex given its market leadership in the engineering and construction industry, diversified revenue stream and strengthening balance sheet. A pick-up in infrastructure spends by the government, PLI schemes, uptick in private capex and traction in GCC region would drive long-term growth. Further, green hydrogen, data centers and e-commerce present strong growth opportunities," according to analysts at Sharekhan.
Timken India, Praj Industries, AIA Engineering and ABB were among other individual stocks from the S&P BSE Capital Goods index that rallied between 4 per cent and 5 per cent.
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