Budget impact: NBFCs continue to rise, stock gains 18%
By Souvick Bhaduri |
2/2/2017 12:50 PM Thursday
After a stellar rally on Wednesday, non-banking financial company (NBFC) stocks like Ujjivan Financial Services, Bharat Financial Inclusion, Equitas Holdings and Capital First continue to rise on the back of strong support shown by government towards rural development, during the Budget speech of Finance Minister Arun Jaitley.
The Finance Minister announced steps to boost rural income and promote affordable income, during his budget speech on Wednesday. He increased the budget allocation by 24 per cent for the rural, agriculture and related sectors to Rs 1.87 lakh crore. He has further allocated highest ever budget of Rs 48,000 crore which is increased by 24.6 per cent YoY.
To boost the housing sector, the government has reduced the long term capital gain (LTCG) holding period from 3 years to 2 years for immovable assets. He further gave infrastructure status to affordable housing to help them take benefit of the status. Adding to that, the government has proposed to build one crore houses by 2019 for the people living in 'kutcha' houses with a raised budget allocation for Pradhan Mantri Awaas Yojana-Gramin to Rs 23,000 crore in FY17-18 from existing Rs 15,000 crore.
Overall, these steps have given a big push to all the NBFCs, which would directly get the benefit. Some of the star performers of this sector that have gained in a range of 8-18 per cent in last two days are:
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