HUDCO buildfs up

HUDCO and NBCC are two stocks buzzing today; HUDCO rose over 8.5% to Rs.289.90, which is just Rs.10 lower than the high it had last week at Rs.299.90. NBCC rose 8.5% to an intraday high at Rs.155;both are traded strongly in the green.

Both the stocks have reacted positively to the new Cabinet approvedgovernment assistance for the construction of three crore houses under Pradhan Mantri Awas Yojana (PMAY). Of the three crore houses, two crore will be constructed under PMAY-Gramin, while one crore under PMAY-Urban.

HUDCO builds affordable homes and NBCC is a beneficiary of construction related activities. The Govt currently holds 75% stake in HUDCO and will naturally be a big beneficiary of the renewed PMAY.

This is expected to give a boost to construction under PMAY once again taking off. The Govt has to yet complete building homes already sanctioned, which is at 11.8 million, of which 8.35 million have been completed.