Shares of domestic cement companies advanced on Monday ahead of Union Budget 2016 on February 29 amid hopes of an increase in infrastructure spending by the government.
At 11.46 am, UltraTech Cement, Ambuja Cement and Shree Cement were trading 1.81 per cent, 0.54 per cent and 1.70 per cent up at Rs 2891.75, Rs 195.90 and Rs 10833, respectively. Sensex was trading 28 points up at 23,736.
HSBC expects the government to increase infrastructure spending by 29 per cent this year including for smart cities and low cost airports also cites potential cut in excise duty to 6 per cent from 12.5 per cent.
Sahil Kapoor, chief market strategist, Edelweiss Broking, said, “Last year, the government had stressed on infrastructure development. Public spending to boost infrastructure is likely to continue this year as well. We expect the government’s capex for roads and T&D to increase substantially in the next fiscal.”
(With inputs from Reuters)