Housing stocks rose on Tuesday, a day after the new Cabinet approved assistance for building three crore houses under the Pradhan Mantri Awas Yojana.
In its first meeting, chaired by Prime Minister Narendra Modi, the Union Cabinet approved providing assistance for construction of houses to meet the needs of additional rural and urban households, addressing the increased number of eligible families.
This happened during the inaugural meeting of the Modi 3.0 government on Monday, held at the Prime Minister's residence at 7, Lok Kalyan Marg. Ministers from all National Democratic Alliance allies attended the meeting.
Following this announcement, shares of housing companies rose, with the NBCC India Ltd. stock jumping 11.57% and Ashiana Housing Ltd. shares rising 8.56% intraday.
Housing finance stocks also surged. Intraday, shares of Housing and Urban Development Corp. were up 8.45%, while those of Aavas Financiers Ltd. rose 9.15%. Home First Finance Co. stock gained 11.38%.
Shares of HUDCO have risen over 380% in the past year, while Aavas Financiers and Home First Finance Co. have surged 38.4% and 15.7%, respectively, during the period.
The Government of India has been implementing the PMAY since fiscal 2016, to assist eligible rural and urban households in constructing houses with basic amenities.
All the houses constructed under PMAY are provided with basic amenities like household toilets, LPG connection, electricity connection and functional household tap connection, through convergence with other schemes of the central and state governments.
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