In Budget FY23, the government has allotted Rs.48,000 crore for PMAY (Pradhan Mantri Awas Yojana); in 2022-23, 80 lakh houses will be completed for identified beneficiaries of PMAY and 60,000 houses will be identified as beneficiaries for PMAY in rural and urban areas.
A day after Budget 2022, most of the housing finance companies extend gain up to 15 per cent on the BSE at the market close. The government on Tuesday announced a slew of measures to the housing finance companies, which may also have an indirect impact on the real estate segment.
In Budget FY23, the government has allotted Rs.48,000 crore for PMAY (Pradhan Mantri Awas Yojana); in 2022-23, 80 lakh houses will be completed for identified beneficiaries of PMAY and 60,000 houses will be identified as beneficiaries for PMAY in rural and urban areas.
Individually, LIC Housing Finance jumped up to 5 per cent mainly on the two reasons, real estate announcements and parent company Life Insurance Corporation of India’s initial public offering.
Other housing finance stocks such as GIC Housing, Ganesh Housing and PNB Housing each surged almost 2 per cent on the BSE at the market close. While small-cap housing finance firm Star Housing gained over 15 per cent on the BSE at the close.
Index heavyweight, Housing Development Finance Corporation Limited (HDFC) was also buzzing on triggers: Budget announcement and healthy third-quarter numbers for FY22. It closed over 2 per cent higher to Rs 2618 per share on the BSE.
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According to analyst at Hem Securities, “Budget focus is to accelerate the supply of affordable housing and to promote affordable housing, CG will work with SG to reduce the time for various approvals, while these announcements will be a major booster for real estate companies.”
The brokerage firm picks Prestige Estates as a perfect bet to suit the announcements made by finance minister Nirmala Sitharaman in Budget 2022-23 on Tuesday. The stock on Wednesday closed almost 1.5 per cent on the BSE as compared to a 1.18 per cent rise in the BSE Sensex.
