thumbs up from markets: steel, cement scrips up - stainless steel bottle manufacturer
New Delhi: while the railway budget has greatly boosted infrastructure development, the stock market appreciates the move.
The index of capital goods rose by 2.
Tuesday 05%, 30-
Stock Sensitive Index (sensex)moving up 0. 88% (156 points).
In the commodity market, the share price of stainless steel manufacturer Jindal Stainless Steel rose by 7.
RS 2% to Rs 160.
Railway Minister Lalu Prasad Yadav proposed the construction of a stainless steel passenger car, which is expected to drive demand for this product in the country.
Since Jindal Stainless steel is the largest producer of the product, this move may increase the company's profitability.
Other sectors that will benefit from the railway budget are the cement, steel and electronics industries.
Shares in Jindal Steel and electricity (JSPL)
Indian steel authority (SAIL)
On Tuesday, companies such as ACC, Indian cement and Andhra cement rose more than the average for other companies.
In fact, the railway budget has been seen as a pioneer in the total budget, which will be submitted to parliament on Friday.
It is widely believed that infrastructure investment will be a major focus of the government.
Religare, a consulting firm, said the railway budget plans to invest Rs 100,000 in infrastructure, which will create huge business opportunities for Indian companies.
The budget proposes planned capital expenditures of RS 37,500.
In addition, the company plans to invest Rs 75,000 to improve infrastructure and Rs 25,000 to strengthen technology and build dedicated freight corridors.
"The key industries that benefit are Logistics, EPC, information technology, electronic equipment and metals," Religare said in a report . ".
The railway budget also proposes dedicated vehicles connecting the ports of mondra, Candela and Krishna Napa South.
It also suggests plans to invest 10 million rupees per month through PPP (
In the next five years
Market participants say these initiatives are a sign of the future development of the industry and the country.
A senior adviser said that actions on the railway budget could also be reflected in the general budget.
As government revenue increases, FM Chidambaram will also make huge investments in infrastructure construction.
This will be a huge boost for the market, he said.