Most power stocks, including Adani Transmission, Siemens, Adani Green Energy, BHEL and KEC International rose up to 3 percent in intraday trade after the Union Budget 2021 proposed the revival of power distribution companies (discoms).
The Union Budget 2021 has lined up Rs 3.05 lakh crore package to revive power distribution companies (discoms) through a revamped reform scheme.
In addition, with an aim to give more powers in the hands of consumers and breaking the monopoly of discoms, the Budget has proposed the introduction of a new framework to give the option to consumers to choose from more than one discoms.
The Budget has proposed the introduction of a new framework to give the option to consumers to choose from more than one discoms.
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The BSE Power index was up about 2 percent at 1320 hours. The market cheered the Budget as the equity barometer Sensex jumped over 1,700 points.
"Undoubtedly, it was a pro-growth and constructive Budget with a focus on sustaining economic growth momentum and job creation. It was overall a good budget and mostly on expected lines," said Binod Modi, Head Strategy, Reliance Securities.
"It did not give any meaningful negative surprise to the market in terms of the imposition of Covid-19 cess and higher direct taxes. A 35 percent increase in capital expenditure certainly bodes well given private Capex is still to take some time to revive."
Modi further added that the government’s commitment to revive infrastructure activities through higher budgetary allocations and setting up infrastructure financing institution augur well for the economy.
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