Indian equity markets on Thursday jumped nearly 0.5% led by cement, metal and infrastructure stocks amid expectation that the government's plan to spend on infrastructure will help revive the economy.
At 11.50 am, the benchmark Sensex was up 0.45% or 185.30 points, while Nifty climbed 0.46% or 56.05 points to 12238.55 points.
Among cement stocks, ACC, Ultratech Cement Ltd, India Cements, Ambuja Cements, and Shree Cement surged 3-5%,
Among infrastructure stocks, Larsen & Toubro Ltd, Dilip Buildcon Ltd, KNR Constructions, Ashoka Buildcon, and IRB Infra rose 1-3%. In metals, SAIL, NALCO, Jindal Steel & Power, Tata Steel, JSW Steel, Vedanta Ltd, Hindustan Zinc gained 2-9%.
Finance minister Nirmala Sitharaman, on Monday, unveiled the government’s plan to invest Rs102 trillion over five years to develop social and economic infrastructure to boost India’s sagging growth.
"The pan India single window clearance system will ensure quick permissions to revive economic slowdown and ensure quicker development. It is estimated that India would need to spend $4.5 trillion on infrastructure by 2030 to sustain its growth rate, hence this endeavour of the National Infrastructure Pipeline will make things happen in an efficient manner", said Manju Yagnik, vice chairperson, Nahar Group and Vice President NAREDCO (Maharashtra) .
"This also looks towards creating jobs, improvise ease of living, and provide equal access of infrastructure for all, thereby making growth more inclusive", Yagnik added.
Meanwhile, Prakash Industries gained 14% after the company secured allocation of long-term coal linkages. Apollo Hospitals Enterprises advanced 3% after the company got regulators’ approval for Apollo Munich deal.
"Going ahead, markets are likely to remain in a narrow range due to mixed cues. While global markets will resume from their yearend holidays, Indian markets would be looking ahead for the December quarterly results and any significant developments from the government before the Union Budget," said Siddhartha Khemka, head - Retail Research, Motilal Oswal Financial Services.
Religare Broking continued to maintain its cautious stance on Indian markets in the near term, given the recent run up. “…movement in crude oil prices and currency would be actively tracked by the traders", said Ajit Mishra, VP - Research, Religare Broking.