Centre approves 3 crore houses under PMAY; key stocks to keep an eye on

Housing finance stocks have been trading in positive territory as the newly inducted government under Prime Minister Narendra Modi has approved additional houses for the poor in the first Cabinet meeting.

Shares of Aadhar Housing Finance were trading at ₹396 apiece, up 2.71%, on Tuesday, June 11, on the National Stock Exchange (NSE).

The rally in the newly listed stock was seen after the government approved two crore additional houses under the Pradhan Mantri Awas Yojana-Gramin (PMAY-G) scheme and one crore houses under PMAY-Urban.

Both the housing schemes have been flagship welfare schemes of the government. In the last 10 years, a total of 4.21 crore houses have been completed for the eligible poor families under the PMAY scheme.

Apart from Aadhar Housing Finance, stocks like Reliance Home Finance (+4.84%), Aavas Financiers (+6.61%), GIC Housing Finance (+7%) and PNB Housing Finance (+2.88%) were also trading higher.

Shares of affordable housing finance company Housing and Urban Development Corporation (HUDCO) were also trading 5.7% higher at ₹282.5. Intraday, the stock hit a high of ₹289.9. HUDCO shares have gained 380% in the past year. As per experts, HUDCO would be a proxy play for India's infrastructure and housing development segment.

NBCC, formerly called National Buildings Construction Corporation, benefiting from construction-related activities, also jumped 7.1%. NBCC's share value has increased by 93% in the last six months, nearly 266% in the last year.

What is PM Awas Yojana?

Pradhan Mantri Awas Yojana is a scheme to provide affordable housing to the underprivileged. Experts believe that the government's focus on providing housing to all is a significant growth trigger for Indian housing financial firms.

In a post on X, PM Modi said, "Our government has today decided to expand the Pradhan Mantri Awas Yojana and build 3 crore new houses in villages and cities. This decision also reflects our commitment to make the living standards of the people easier."

"This will not only fulfil the need of people for houses, but will also provide them a quality life. The expansion of PMAY also brings out our determination for development of all and social justice (Sabka Vikas aur Samaj Kalyan)," he added.

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