Construction stocks rise after cabinet OKs converting state roads to highways

Shares of 12 construction firms rose by 0.45% to 2.09% at 11:29 IST on BSE after the cabinet on Thursday, 20 February 2014, decided to convert 7,200 kilometres of states roads into national highways.

NCC (up 2.09%), Hindustan Construction Company (up 1.96%), Pratibha Industries (up 1.87%), Valecha Engineering (up 1.67%), IVRCL (up 1.43%), IRB Infrastructure Developers (up 0.78%), Madhucon Projects (up 0.75%), Simplex Infrastructures (up 0.7%), Gammon Infrastructure Projects (up 0.58%), PBA Infrastructure (up 0.51%), Unity Infraprojects (up 0.5%) and Sadbhav Engineering (up 0.45%), edged higher.

The S&P BSE Sensex was up 175.29 points, or 0.85% at 20,711.93.

Keeping in view the estimated allocations likely to be made available for development of non-National Highways Development Project based on the previous years' trends, it is anticipated that there would be adequate funds available for taking up improvement works on these new national highways. There would also be adequate funds available for taking up improvement of the remaining existing national highways network of 21,271 kilometres, not covered under any programmes/schemes so far, a government release said.

Expansion of the national highway network is a continuous process and declaration of a new national highway is taken up from time to time, depending upon requirement of connectivity, inter-se priority and availability of funds, the release added.

Powered by Capital Market - Live News