L&T, Siemens surge up to 5% as govt proposes 33% jump in capex outlay

Timken India, Praj Industries, AIA Engineering and ABB were among other individual stocks from the S&P BSE Capital Goods index, up 4 - 5 per cent each.

capex
SI Reporter Mumbai
2 min read Last Updated : Feb 01 2023 | 12:34 PM IST
The S&P BSE Capital Goods index moved higher by 2 per cent to 34,539 on the BSE in Wednesday’s intra-day trade, after the Budget 2023 proposed 33 per cent jump in capital expenditure (capex) outlay for the financial year 2023-24 (FY24).

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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Topics :Buzzing stocksBudget 2023Larsen & Tourbo L&TSiemenscapital goods sectorstock market rally

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