Finance Minister Nirmala Sitharaman announced to increase the outlay for Pradhan Mantri Awas Yojana by 66% to Rs 66,000 crore, which will be positive for cement companies.
Higher government focus on building infrastructure including roads, airports, ports, bridges and other hard structures will increase overall cement demand. Increased allocation of funds to government schemes like Pradhan Mantri Awas Yojna will further enhance cement demand. Higher expenditure on low-cost housing will further increase the demand for cement.
This was reflected in the upward movement of shares of major cement companies like Birla Corp., JK Lakshmi Cement and India Cements among others.
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