Infra stocks end in green on government push

In today’s trading session, the major infrastructure stocks ended in the green, supported by the announcement of the national infrastructure pipeline project worth more than Rs 100 lakh crore on around 7,000 projects.

Infra major Larsen & Toubro (L&T) gained nearly 3 per cent to Rs 1,007, NCC gained nearly 5 per cent to Rs 33.75, NBCC (India) gained around 5 per cent to Rs 28.20, KNR Constructions gained roundabout 7 per cent to Rs 228.75 and J Kumar Infraprojects gained nearly 3 per cent to Rs 103.90 and Ashoka Buildcon gained nearly 11 per cent to Rs 78.50 on BSE.

National Infrastructure Pipeline (NIP) project will play a crucial role in pulling the country out of the impact of COVID-19. The investment has been predicted between the fiscal years 2020 and 2025, which is a mix of private and public money. While around 18-20 per cent of the pipeline is expected to be financed through the central government budget, around 24-26 per cent is to be contributed by state coffers.

Let’s take a look at the recent order books of the major infrastructure companies which are likely to gain with this infra push. Order book of Larsen & Toubro (L&T) as on June 2020 stood at Rs 3,05,100 crore, NCC as on June 2020 stood at Rs 27,916 crore, Ashoka Buildcon as on June 2020 stood at Rs 8,616.8 crore, NBCC as on March 2020 was nearly Rs 70,000 crore and KNR Constructions as on March 2020 stood at Rs 7,888 crore.