HUDCO stock zooms 20% after Nirmala Sitharaman announces 2 crore more homes under PMAY

Shares of state-owned HUDCO zoomed 20 per cent higher on Thursday after Finance Minister Nirmala Sitharaman announced building 2 crore more houses for the rural poor in the next five years.

These 2 crore houses will be built under the PM Awas Yojana (Grameen).

The stock surged 19.99 per cent to close at Rs 206.80 apiece, its upper circuit limit as also a 52-week high level on the NSE. On the BSE, shares of HUDCO zoomed 19.62 per cent to settle at Rs 206.35 per piece.

The Housing and Urban Development Corporation (HUDCO) provides financial assistance for housing and urban infrastructure projects.

Post the budget announcements, shares of construction company NBCC (India) advanced 12.01 per cent to finish at Rs 145 apiece and also its 52-week high level on the NSE.

On the BSE, the stock climbed 9.78 per cent to end at Rs 142.05 per piece.

In the broader equity markets, the 30-share BSE Sensex declined 106.81 points or 0.15 per cent to close at 71,645.30, while NSE Nifty fell 0.13 per cent to end at 21,697.45.

In her interim budget speech on Thursday, Finance Minister Nirmala Sitharaman announced a scheme to help those living in rented accommodation or slums to acquire a house.

She also announced building of 2 crore more houses for the rural poor in next five years under the continuing PM Awas Yojana (Grameen).

"Our government will launch a scheme to help deserving sections of the middle class 'living in rented houses, or slums, or chawls and unauthorized colonies' to buy or build their own houses," Sitharaman said.

"Despite the challenges due to COVID, implementation of PM Awas Yojana (Grameen) continued and we are close to achieving the target of three crore houses. Two crore more houses will be taken up in the next five years to meet the requirement arising from increase in the number of families," she said.

The overall target is to construct 2.95 crore pucca houses with basic amenities by March 2024.