Budget 2024: Andhra Pradesh-linked stocks NCC, KCP and 4 others gain up to 6% – here’s why

Stocks with a strong presence in Andhra Pradesh are in focus today following the announcements of Budget 2024 by Finance Minister Nirmala Sitharaman. For the first time in a decade, the Union Budget 2024–2025 has allocated significant funds to the state, drawing investor attention to companies operating there.

The Finance Minister said in her budget speech today, “Our government has made efforts to fulfill the commitments in the Andhra Pradesh Reorganisation Act. Recognising the state's need for capital, we will facilitate special financial support through multilateral agencies.”

“In the current FY, ₹15,000 crore will be arranged with additional amounts in future years. Our government is fully committed to the early completion and financing of the Polavaram irrigation project, which is the lifeline for Andhra Pradesh and its farmers,” she added.

Under the Andhra Pradesh Reorganisation Act, for promoting industrial development, funds will be provided for essential infrastructure, "such as water, power, railways and roads…on the Vishakhapatnam-Chennai industrial corridor, and on the…Hyderabad-Bangalore industrial corridor," Sitharaman announced.

Amid this backdrop, shares of NCC jumped 6% to ₹333.40 apiece, while those of KCP, Likhitha Infrastructure, Amara Raja Energy & Mobility, Deccan Cement, and Ramco Cements jumped up to 5% in today's intraday trade.

In an unexpected turn, the Bharatiya Janata Party (BJP) did not secure a full majority in General Elections 2024, necessitating the formation of a coalition government with allies such as the TDP and JDU. Analysts had anticipated that the government would make special provisions for these states in the Union Budget 2024–2025.

In her budget speech, the FM said, "New airports, medical colleges, and sports infrastructure in Bihar will be constructed. The Bihar government's requests for external assistance from multilateral development banks will be expedited."

The benchmark indices are experiencing modest declines today. The Nifty 50 is down by 0.21%, currently at 24,457.90 points, while the Sensex has fallen by 0.22%, trading at 80,325 points. Additionally, the Nifty Midcap 100 and Nifty Smallcap 100 indices have both dropped by 0.32%.

23 out of 50 constituents of the Nifty 50 are currently trading with gains between 1% and 3%, respectively.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.