Shares of infra construction firms rally up to 13% after Budget allocations

Shares of infrastructure firms, mainly engaged in the business of building roads and highways, have rallied up to 13 per cent after the Finance Minister announced mega national highway projects for Tamil Nadu, West Bengal, Assam and Kerala. This is the 'highest ever' allocation of ₹1.18 trillion for the Union Transport Ministry. The states will get highways worth ₹2.27 trillion in the next three years. National highway works of 3,500 km for ₹1.03 trillion will be undertaken in Tamil Nadu, 1,100 km projects for ₹65,000 crore in Kerala, 675 km in West Bengal for ₹25,000 crore and ₹34,000 crore road projects for Assam in the next three years.

Shares of NCC rallied up 13 per cent to ₹66.75 on the BSE on back of a two-fold jump in trading volumes. Ashoka Buildcon jumped up 9 per cent to ₹95.30, followed by KNR Constructions (up 7 per cent at ₹394), Dilip Buildcon (up 6 per cent at ₹450) and Larsen & Toubro (up 4 per cent at ₹1,386).