Interim Budget 2024: Housing for middle-class scheme to strengthen financing, cement, steel, paint sectors
Meanwhile, the government has allotted Rs 80,671 crore towards Pradhan Mantri Awas Yojna (PMAY) for the financial year 2025.
- Feb 1, 2024,
- Updated Feb 1, 2024 2:24 PM IST
Finance Minister Nirmala Sitharaman on February 1 said that the government will launch a scheme to help deserving sections of the middle class “living in rented houses, or slums, or chawls and unauthorized colonies” to buy or build their own houses. Meanwhile, the government has allotted Rs 80,671 crore towards Pradhan Mantri Awas Yojna (PMAY) for the financial year 2025.
While presenting the Interim Budget 2024, Sitharaman also said that Pradhan Mantri Awas Yojana (Grameen) is close to achieving the target of 3 crore houses, an additional 2 crore targeted for the next 5 years. Market watchers believe that the move will boost sentiments for housing finance companies, cement, steel and paint companies going ahead.
Sharing his views on the announcement, A M Karthik, Senior Vice President and Co-Group Head, Financial Sector Ratings, ICRA said, “Additional 2 crore houses under the PMAY (Grameen) over the next 5 years and, the proposed launch of a housing scheme to the middle class would boost demand for affordable housing units. This augurs well for housing finance companies, who have been a key driver of credit to these segments in the recent past. While liquidity at this juncture looks tight, a lower GOI borrowing programme in the next fiscal could temper the funding cost increase of these lenders."
Shares of PNB Housing Finance traded 2.17% up at Rs 801.95 at around 1.33 pm (IST). On the other hand, the benchmark BSE Sensex traded 0.22% lower at 71,596. LIC Housing Finance was up 0.88% at Rs 630.
Veer Trivedi, Research Analyst, SAMCO Securities said, “The additional plan to build 2 crores more houses over the next five years signals sustained commitment. This intensified focus on PMAY is expected to trigger increased investments and heightened activity in the construction sector, with multiplier effects on housing finance, cement, steel and paints industries, reflecting a significant positive impact across various sectors.”
Also read: Stock recommendations by analyst for February 1, 2024: Exide, DCW and Trident
Also read: Top 5 stocks to watch on February 1: Paytm, Glenmark Pharma, Adani Enterprises and more
Also read: Godrej Consumer shares rise 11%, hit record high on Q3 earnings
Finance Minister Nirmala Sitharaman on February 1 said that the government will launch a scheme to help deserving sections of the middle class “living in rented houses, or slums, or chawls and unauthorized colonies” to buy or build their own houses. Meanwhile, the government has allotted Rs 80,671 crore towards Pradhan Mantri Awas Yojna (PMAY) for the financial year 2025.
While presenting the Interim Budget 2024, Sitharaman also said that Pradhan Mantri Awas Yojana (Grameen) is close to achieving the target of 3 crore houses, an additional 2 crore targeted for the next 5 years. Market watchers believe that the move will boost sentiments for housing finance companies, cement, steel and paint companies going ahead.
Sharing his views on the announcement, A M Karthik, Senior Vice President and Co-Group Head, Financial Sector Ratings, ICRA said, “Additional 2 crore houses under the PMAY (Grameen) over the next 5 years and, the proposed launch of a housing scheme to the middle class would boost demand for affordable housing units. This augurs well for housing finance companies, who have been a key driver of credit to these segments in the recent past. While liquidity at this juncture looks tight, a lower GOI borrowing programme in the next fiscal could temper the funding cost increase of these lenders."
Shares of PNB Housing Finance traded 2.17% up at Rs 801.95 at around 1.33 pm (IST). On the other hand, the benchmark BSE Sensex traded 0.22% lower at 71,596. LIC Housing Finance was up 0.88% at Rs 630.
Veer Trivedi, Research Analyst, SAMCO Securities said, “The additional plan to build 2 crores more houses over the next five years signals sustained commitment. This intensified focus on PMAY is expected to trigger increased investments and heightened activity in the construction sector, with multiplier effects on housing finance, cement, steel and paints industries, reflecting a significant positive impact across various sectors.”
Also read: Stock recommendations by analyst for February 1, 2024: Exide, DCW and Trident
Also read: Top 5 stocks to watch on February 1: Paytm, Glenmark Pharma, Adani Enterprises and more
Also read: Godrej Consumer shares rise 11%, hit record high on Q3 earnings