Infrastructure shares mix as government to provide Rs 26,000 crore boost to road connectivity projects

Shares of infrastructure companies traded mixed in the late morning trade after Finance Minister Nirmala Sitharaman announced that the government will provide Rs 26,000 crore boost to road connectivity projects.

Following the announcement, Hindustan Construction Company traded 1.62% higher at Rs 47.69 at around 11.59 am (IST). On the other hand, the benchmark BSE Sensex was down 0.83% lower at 80,319 at around the same time. PNC Infratech was up 2.01% at Rs 518.

IRB Infrastructure Developers was down 1% at Rs 67.10. Engineering and construction major Larsen & Toubro traded 2.15% lower at Rs 3,573.

Meanwhile, the FM announced the capital expenditure target of FY25 has been set at Rs 11.1 lakh crore, up by 11.1%. The figure stood unchanged from that announced in the interim budget in February earlier this year.

According to SAMCO Securities, no change in capex outlay is a major positive and shows the government’s resolve to balance both the infrastructure development and populism of coalition politics.

In another development, shares of NTPC and Bharat Heavy Electricals (BHEL) also gained after the government announced that the joint venture (JV) between NTPC and BHEL will set up a 800 MW commercial plant using AUSE tech.

BHEL traded nearly 2% higher at Rs 310.75, while NTPC was up 1.75% at Rs 380.10.

The Finance Minister also announced improvements in the agriculture industry by digitising public infrastructure for their lands within three years for 6 crore farmers in partnership with states. SAMCO Securities believes the announcement is positive for companies such as CDSL, CE Info Systems and Genesys. Shares of CE Info Systems and Genesys International Corporation advanced nearly 9% and 7%, respectively, after the announcement. CDSL was up 0.35% at Rs 2,299.