Budget 2024: Govt allocates Rs 11.1 lakh crore capex target for FY25; infra-related stocks trade mix

Budget 2024: In her Interim Budget 2024 speech, Finance Minister Nirmala Sitharaman announced a capital expenditure (capex) of Rs 11.1 lakh crore for FY25. This is said to be the largest capex allocation to date.

Following the announcement, civil construction company, GMR Power and Urban Infra Ltd hit the 5 per cent upper circuit on the BSE at Rs 53.67 apiece, and IRB Infrastructure Developers shares gained nearly 3 per cent. On the other hand, L&T traded over 1 per cent lower, PNC Infra was down nearly 3 per cent and NCC was also down over 1 per cent.

The Nifty Realty index also declined over 1 per cent with Prestige Estates being the top loser, slipping over 2 per cent.

"Huge incentives to the private sector for innovations by creating a new fund exceeding one lakh crore and further a deep focus on infrastructure development by increasing the overall provisions as well as steps being taken towards rural, women, and farmer development are astounding steps that will accelerate India becoming a developed nation," said Rajesh Narain Gupta, Managing Partner of SNG & Partners, Advocates & Solicitors.

"The Finance Minister announces a modest 11.1 per cent increase in India's infrastructure spending, aligning closely with the nominal growth estimate," said Pradeep Gupta, co-founder and vice chairman, Anand Rathi Group.

Gupta added, however, that to address the challenges of deteriorating infrastructure, India must consider a more substantial increase in investment rather than a reduction.

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