Infra stocks react to NIP
Yesterday evening, the FM announced a Rs.102 lakh crore National Infrastructure Pipeline (NIP), which is basically a road map for the development of infra in the country from 2019-20 till 2024-25. This is in line with Modi’s aim to make into a $5 trillion economy by 2024-25.
Fund allocation of the NIP:
Rs.7.7 lakh crore for irrigation and rural infrastructure projects
Rs.3.07 lakh crore on industrial infrastructure
Rs.19.63 lakh crore on road projects
Rs.13.68 lakh crore on railways
Rs.1 lakh crore spend on ports
Rs.1.43 lakh crore on airports
Rs.16.29 lakh crore on urban infrastructure
Rs.3.2 lakh crore on telecom projects
Around 42% of NIP projects are currently under implementation while 31% are at the conceptualisation stage.
This news gave some jump up to the stocks in the infra sector, especially those in the capital good sector. But it’s a mixed bag with not all stocks surging into the green – of the 22 stocks in the BSE Capital Goods sector, 12 were on a decline while 10 rose.
Specific stocks which rose includes L&T, Sadbhav Eng, Reliance Infra, Punj Lloyd, Ashoka Buildcon, PNC Infra, Dilip Buildcon, ACC.