 "Nifty Infra index hits 7-year high after govt announced Bharatmala project")
Shares of infrastructure companies were in focus with the Nifty Infrastructure index hitting nearly seven-year high on the National Stock Exchange (NSE), after the Cabinet clears Rs 7 lakh crore Bharatmala project. The announcement came after market hours on Tuesday.
Larsen & Toubro (L&T), NCC, IRB Infrastructure, GMR Infrastructure, Siemens, Engineers India and Bharat Heavy Electricals Limited (BHEL) from the Nifty Infrastructure index were trading higher by upto 6% on the NSE.
KNR Constructions, Ashoka Buildcon, Sadbhav Engineering, Simplex Infrastructures and Gayatri Projects from the non-index stocks were up in the range of 5% to 9%.
At 12:07 AM; Nifty Infrastructure index was up 1.9% at 3,541, as compared to 0.55% gain in the benchmark index. The infra index hit an intra-day high of 3,544, its highest level since November 2010.
The Union Cabinet on Tuesday cleared the Bharatmala project to construct 20,000 km of highways connecting western and eastern parts of the country at an estimated investment of Rs 7 lakh crore.
In the first phase to be undertaken over three-five years, the project would cost Rs 5.5 lakh crore. The project would be funded through various sources, including Rs 2.09 lakh crore from the market, Rs 1.06 lakh crore through private investment and Rs 2.19 lakh crore from the central road fund or toll collection.
“Overall, we believe cabinet approval is a positive step and provides a multiyear visibility for the National Highways Authority of India (NHAI) as only around 10,000 km is left in the National Highways Development Project (NHDP) program. Investment in road sector has multi-fold implications and can materially revive the capex cycle along with potential acceleration in housing, railways and defence,” Antique Stock Broking said in a note.
Larsen & Toubro (L&T), NCC, IRB Infrastructure, GMR Infrastructure, Siemens, Engineers India and Bharat Heavy Electricals Limited (BHEL) from the Nifty Infrastructure index were trading higher by upto 6% on the NSE.
KNR Constructions, Ashoka Buildcon, Sadbhav Engineering, Simplex Infrastructures and Gayatri Projects from the non-index stocks were up in the range of 5% to 9%.
At 12:07 AM; Nifty Infrastructure index was up 1.9% at 3,541, as compared to 0.55% gain in the benchmark index. The infra index hit an intra-day high of 3,544, its highest level since November 2010.
The Union Cabinet on Tuesday cleared the Bharatmala project to construct 20,000 km of highways connecting western and eastern parts of the country at an estimated investment of Rs 7 lakh crore.
In the first phase to be undertaken over three-five years, the project would cost Rs 5.5 lakh crore. The project would be funded through various sources, including Rs 2.09 lakh crore from the market, Rs 1.06 lakh crore through private investment and Rs 2.19 lakh crore from the central road fund or toll collection.
“Overall, we believe cabinet approval is a positive step and provides a multiyear visibility for the National Highways Authority of India (NHAI) as only around 10,000 km is left in the National Highways Development Project (NHDP) program. Investment in road sector has multi-fold implications and can materially revive the capex cycle along with potential acceleration in housing, railways and defence,” Antique Stock Broking said in a note.
| COMPANY | LATEST | PREV CLOSE | GAIN(%) |
| MADHUCON PROJ. | 29.75 | 27.20 | 9.4 |
| ASHOKA BUILDCON | 208.50 | 192.35 | 8.4 |
| SIMPLEX INFRA | 503.70 | 466.85 | 7.9 |
| SADBHAV ENGG. | 312.60 | 290.35 | 7.7 |
| KNR CONSTRUCT. | 241.60 | 224.70 | 7.5 |
| GMR INFRA. | 18.40 | 17.40 | 5.8 |
| IRB INFRA.DEVL. | 225.50 | 214.35 | 5.2 |
| LARSEN & TOUBRO | 1199.20 | 1140.00 | 5.2 |
| NCC | 106.70 | 101.45 | 5.2 |
| C & C CONSTRN. | 58.70 | 55.95 | 4.9 |
| SKIL INFRASTR | 35.30 | 33.65 | 4.9 |
| PATEL ENGG. | 79.45 | 75.75 | 4.9 |
| GAYATRI PROJECTS | 196.25 | 187.65 | 4.6 |
| IL&FS TRANSPORT | 83.95 | 80.60 | 4.2 |
| ENGINEERS INDIA | 155.85 | 151.85 | 2.6 |
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%