Shares of five cement companies rose by 0.36% to 2.62% at 14:43 IST on BSE on hopes of increase in demand for cement on higher allocation for infrastructure in the budget 2018-19.
The Union Budget 2018-19 was presented in the Parliament by the finance minister today, 1 February 2018.Meanwhile, the S&P BSE Sensex was up 32.22 points or 0.09% at 35,997.24.
ACC (up 0.61%), Shree Cement (up 1.09%), Ambuja Cements (up 1.84%), and UltraTech Cement (up 0.36%) gained.
Grasim Industries advanced 2.62%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
The finance minister said that the focus of the government next year will be on providing maximum livelihood opportunities in the rural areas by spending more on livelihood, agriculture and allied activities and construction of rural infrastructure. In the year 2018-19, for creation of livelihood and infrastructure in rural areas, total amount to be spent by the ministries will be Rs 14.34 lakh crore, including extra-budgetary and non-budgetary resources of Rs 11.98 lakh crore.
Infrastructure is the growth driver of economy. The country needs massive investments estimated to be in excess of Rs 50 lakh crore in infrastructure to increase growth of GDP, connect and integrate the nation with a network of roads, airports, railways, ports and inland waterways and to provide good quality services to people, he added.
The government has made an all-time high allocation to rail and road sectors. The government is committed to further enhance public investment. Provision of key linkages like coal for power, power for railways and railway rakes for coal have been rationalized and made very efficient.
In order to create employment and aid growth, Government's estimated budgetary and extra budgetary expenditure on infrastructure for 2018-19 is being increased to Rs 5.97 lakh crore against estimated expenditure of Rs 4.94 lakh crore in 2017-18.
Finance Ministry will leverage the India Infrastructure Finance Corporation (IIFCL) to help finance major infrastructure projects, including investments in educational and health infrastructure, on strategic and larger societal benefit considerations.
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