Finance Minister’s Budget 2024 Boosts Housing Finance Company Stocks
In a significant development following the Budget 2024 announcement, housing finance company stocks saw a notable surge in trading on the stock market. Union Finance Minister Nirmala Sitharaman’s emphasis on affordable housing in her speech has sparked optimism among investors.
Sitharaman revealed that the government plans to construct an additional 3 crore houses in both rural and urban areas, with the necessary allocations already in progress. This announcement has led to a positive response from the market, particularly for housing finance companies.
Shares of prominent housing finance companies such as Manraj Housing Finance, Sahara Housingfina Corporation, and Star Housing Finance witnessed a healthy increase of 4-5 percent. Similarly, GIC Housing Finance, Home First Finance Company India, Reliance Home Finance, Repco Home Finance, and AAVAS Financiers also experienced a rise of 1-2 percent during the trading session.
Experts have lauded the government’s focus on housing for the poor, stating that it will benefit both housing finance and cement companies. Sonam Srivastava, Founder and Fund Manager at Wright Research, highlighted the potential for increased loan demand and business expansion for housing finance firms, especially in rural areas.
While the surge in demand is positive for cement companies, they may need to invest in expanding production capacity and managing rising raw material costs to meet the increased requirements. Srivastava emphasized the importance of credit assessment and risk management for housing finance companies, particularly in the affordable housing segment.
Overall, the Budget 2024 announcements have set a positive tone for the housing finance and cement sectors, with market experts optimistic about the potential growth opportunities in the coming months. Investors are advised to consult certified experts before making any investment decisions.
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