Avanti Feeds, Apex Foods shares rally 8% as FM announces sub scheme under PM Matsya Sampada Yojna

Shares of Avanti Feeds and Apex Frozen Foods climbed up to 8  per cent in Wednesday's trade after the FM Nirmala Sitharaman in her Budget speech announced a new sub scheme with Rs 6,000 crore outlay for fisheries.

Shares of Avanti Feeds climbed 7.99 per cent to hit a high of Rs 416.50 on BSE. Apex Frozen rose 2.9 per cent to hit a high of Rs 240.35. During her Budget speech, Sitharaman said the government would launch a sub scheme under PM Matsya Sampada Yojna with outlay of Rs 6,000 crore. This scheme is expected to further enable activities of fishermen, fish vendors, and micro & small enterprises and improve value chain efficiencies, and expand the market, she said.

"A total of Rs 6,0000 crore will be set for fisheries which may benefit companies like Avanti Feeds and Apex Frozen. Rs. 2,200 crores have been allocated to horticulture development. These steps taken by the government will lead to the enhancement of other crops and agriculture," said Urmi Shah, Research Analyst, SAMCO Securities 

The overall market mood was positive, with the BSE Sensex rising 523.75 points or 0.88 per cent to 60,073.65.

Analysts were largely expecting the Budget to have higher allocations to horticulture, fisheries, poultry, animal husbandry and meat sub-sectors.

In her Budget speech, the FM said India will spend Rs 2,200 crore for high-value horticulture.

Continuing our commitment to food security, the FM said the government will implementa scheme to supply free food grain to all Antyodaya and priority households for one year under PM Garib Kalyan Ann Yojana

Meanwhile, there were also hopes of a big boost to capex allocation; some income tax relief to provide more money for consumption at the lower end of the income brackets; continuation of the Credit Guarantee Scheme for MSMEs; PLIs for new sectors to enthuse private capex; and possible plateauing of the allocation to MGNREG, analysts.

The Economic Survey released on Tuesday talked about “fiscal discipline turning into fiscal stimulus” through lowering the cost of government borrowing, and the high interest rate burden. It goes on to argue that for EMs, the gains from fiscal consolidation through a lower risk premium are greater than for DMs.

 

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