The Narendra Modi government has recently approved the Smart Cities Mission for Development of 100 smart cities and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) of 500 cities.
This is a sizeable amount and if the thrust happens, we could see a huge demand for steel, cements, paints, infrastructure etc. Here are a few industries and companies that could gain.
Ultratech Cement, Ambuja Cement and ACC Ultratech Cement is the largest manufacturer of white cements and gray cement in India.
The company along with other players like Ambuja and ACC are likely to be the direct beneficiaries of such a smart city push, as cement demand is likely to surge.
Companies like L&T, Gammon India and HCC, which have a proven track record in executing turnkey projects are also likely to benefit.
These companies may see order book soaring on account of the decades of experience that these companies have in the field.
Consumer goods and electrical goods manufacturers
One cannot think of a house without a geyser, fan or a light.
Companies like Bajaj Electricals, Crompton Graves, Havells India, which are major players in these categories along with electrical switch manufacturers are likely to be the direct benefeciaries.
Most of the paint companies like Asian paints, Kansai Nerolac and Berger are also likely to see demand soaring.
It's important to remember that some of the stock prices of the above mentioned companies has run up very fast.
Therefore, before you venture into buying these stocks it would be better you waited for some reaction and enter them at lower levels.
Just because there is an outlay on smart cities you should not rush to buy the same.