Shares of housing finance companies ended mixed on February 1 after Finance Minister Nirmala Sitharaman announced an increase in outlay for Pradhan Mantri Awas Yojana in her Budget 2023 speech.
The PM Awas Yojana outlay was hiked by 66 percent to ₹79,000 crore in Budget 2023-24.
Apurva Sheth, Head of Market Perspectives & Research, SAMCO Securities observed that the increase in the budget for Pradhan Mantri Awas Yojana is a major positive for low-cost housing providers and financiers.
Shares of Star Housing Finance, Home First Finance Company, SRG Housing Finance, Aptus Value Housing Finance, Sahara Housingfina Corporation, AAVAS Financiers and HDFC ended as the top gainers among the housing finance stocks.
On the flip side, shares of Indiabulls Housing Finance, Reliance Home Finance, LIC Housing Finance, Can Fin Homes, GIC Housing Finance, PNB Housing Finance, Repco Home Finance, India Home Loan and Ind Bank Housing ended among the losers in the housing finance space.
Ravi Subramanian, MD & CEO of Shriram Housing Finance said the enhanced outlay for the Pradhan Mantri Awas Yojana is great news for affordable housing in urban areas.
"The ₹10,000 crore Urban Infra Development Fund will be used for transforming urban planning and making cities more sustainable and will boost housing and housing finance. Middle-income consumers have benefited significantly from this Budget. I believe the announcements made will trigger a pick-up in credit offtake for affordable housing," said Subramanian.
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Meanwhile, Finance Minister Nirmala Sitharaman increased FY24 capital investment outlay by 33 percent to ₹10 lakh crore.
Experts believe this will give a significant boost to capital goods and infra companies.
"The government increased the capital investment outlay for the third time in a year to ₹10 lakh crore, constituting 3.3 percent of GDP. The enhanced investment will spur the private capex, which hasn’t picked up the pace. This will not only boost economic growth but also provide increased employment opportunities, aiding rural India for higher consumption too. Stocks such as L&T, ABB India, Polycab, KEC International, and Siemens stand to gain from this increased outlay," said Sanjay Moorjani, Research Analyst, SAMCO Securities.
Disclaimer: The views and recommendations given in this article are those of individual analysts and broking firms. These do not represent the views of MintGenie.