Budget 2024: Andhra Pradesh stocks gain up to 9% today. Here's why

A handful of companies, with registered offices in Andhra Pradesh, saw their stocks climbing up to 9 per cent, as the Finance Minister Nirmala Sitharaman in her Budget speech announced a Special financial support of Rs 15,000 crore for Andhra Pradesh, with assurance of additional amount in coming years. 

Chandrababu Naidu's TDP had sought a package of more than Rs 1 lakh crore or 0.3 per cent of GDP for Andhra Pradesh, involving a mix of relaxed conditions for state borrowing (by 0.5 per cent of GDP), investment in targeted projects (new state capital, irrigation), debt relief and long-term infrastructure loans. 

Chandrababu Naidu's TDP  won 16 in the recent Lok Sabha seats and is a part of the NDA alliance. 

The Andhra Sugars, whose registered office is in Venkatarayapuram, West Godavari District, added 1.35 per cent to Rs 116.75 level. KCP advanced 4.7 per cent to Rs 254. Amara Raja Energy & Mobility Ltd, whose registered office is in Tirupati, advanced 1.23 per cent to Rs 1,551.15. Its MD Galla Jayadev (Jay Galla) is a former TDP Parliamentary Party Leader. Galla, a two-time MP, did not contest Lok Sabha elections this time. 

The FM also made a few announcements that are seen positive for the companies in the state. For example, the FM said financial support will be offered for setting up a network of nucleus breeding Centers for shrimp growth. Financing for shrimp farming, processing and export will be facilitated through NABARD, she said. This is seen positive for Avanti Feeds, whose registered office is in Vishakhapatnam. This stock rose 8.64 per cent to Rs 669.95. It was later trading at Rs 646.50, up 4.84 per cent. 

Heritage Foods shares added 0.37 per cent to Rs 549.35. Heritage Foods, whose promoter stake stood at 41.30 per cent at the end of March quarter, has Nara Bhuvaneswari, the wife of Chandrababu Naidu, as key stakeholder. She owned 2,26,11,525 shares or 24.37 per cent stake in Heritage Foods at the end of March quarter.