Interim Budget 2024: NBCC, HUDCO shares hit 52-week high post Sitharaman’s speech; here’s why

Shares of NBCC Ltd and HUDCO zoomed to their 52-week highs after Finance Minister Nirmala Sitharaman said two crore houses will be built up in the next five years. The FM also announced a housing scheme for the middle class. Shares of government-owned NBCC zoomed 7.41% to a high of Rs 139 against the previous close of Rs 129.40 on BSE.  Similarly, shares of Housing & Urban Development Corporation (HUDCO) touched their 52-week high after the FM's announcement. HUDCO shares zoomed 19.07% to Rs 205.40 in the afternoon session.

Market cap of NBCC rose to Rs 23,895 crore. The PSU stock has gained 193% in six months and risen 272% in a year. In the current session, total 53.24 lakh shares of the firm changed hands amounting to a turnover of Rs 72.04 crore on BSE. NBCC shares have a beta of 0.6, indicating very low volatility in a year.   

In terms of technicals, the relative strength index (RSI) of the NBCC stock stands at 84.1, signaling it's trading in the overbought zone. NBCC shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day, 200 day moving averages.  

In case of HUDCO, market cap of the firm zoomed to Rs 40,828 crore. The PSU stock has gained 215% in six months and risen 335.54% in a year. In the current session, total 154.11 lakh shares of the firm changed hands amounting to a turnover of Rs 291.02 crore on BSE. HUDCO shares have a beta of 0.6, indicating very low volatility in a year.   

In terms of technicals, the relative strength index (RSI) of the HUDCO stock stands at 71.8, signaling it's trading in the overbought zone. HUDCO shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day, 200 day moving averages.  

“Despite the challenges due to COVID, implementation of PM Awas Yojana (Grameen) continued and we are close to achieving the target of three crore houses. Two crore more houses will be taken up in the next five years to meet the requirement arising from increase in the number of families,” said the FM.

Sitharaman also announced a housing scheme for the middle class. The scheme was envisaged to enable the middle class to build or buy a house of their own.

“Our Government will launch a scheme to help deserving sections of the middle class ‘living in rented houses, or slums, or chawls and unauthorised colonies’ to buy or build their own houses,” she said in her speech.

HUDCO is engaged in housing and infrastructure project finance (including retail lending) and provides consultancy services.

NBCC (India) Limited provides value added services. The company operates through three segments: Project Management Consultancy (PMC), Real Estate Development, and Engineering Procurement and Construction (EPC). PMC segment is engaged in civil construction projects, infrastructure works for the national security, infrastructure projects for the civil sector, and project implementation for Pradhan Mantri Gram Sadak Yojna (PMGSY) and developmental work in Northeastern Region.  

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