New Delhi, Feb 1 (PTI) Metal stocks were in the limelight on Tuesday as they surged up to 7.5 per cent amid the Union Budget announcing measures to boost infrastructure in the country.

Shares of Tata Steel jumped 7.57 per cent, Jindal Steel & Power Limited zoomed 6.59 per cent, Vedanta Limited gained 5.13 per cent, SAIL (5.03 per cent), NMDC (4.68 per cent), and Hindalco Industries (4.51 per cent) on BSE.

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Among others, JSW Steel surged 4.01 per cent, APL Apollo Tubes 1.05 per cent and Hindustan Zinc 0.79 per cent.

BSE Metal index jumped 4.92 per cent to settle at 19,918.63. The budget's focus on infrastructure development as well as affordable housing and highways is expected to augur well for the broader metal sector.

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Finance Minister Nirmala Sitharaman on Tuesday unveiled a Rs 39.45 lakh crore Budget, with higher spending on highways to affordable housing with a view to fire up the key engines of the economy to sustain a world-beating recovery from the pandemic.

Her budget for the fiscal year beginning April 2022 proposed a massive 35 per cent jump in capital expenditure to Rs 7.5 lakh crore, coupled with rationalisation of customs duty, an extension of time for setting up new manufacturing companies and plans for starting a digital currency and taxing crypto assets.

Just like last year, the Budget gave a big boost for infrastructure spending -- from 5G spectrum auction, expanding national highways by 25,000 km, inter-linking of rivers and manufacturing of 400 new generation Vande Bharat trains.

"The higher capex and thrust on infra are required to keep the growth rate high. Rs 48,000 crore allocation to build 80 lakh affordable homes is a big booster for the real estate sector," said Nish Bhatt, Founder & CEO, Millwood Kane International - an investment consulting firm, on the Union Budget 2022.

Parth Nyati, Founder, Tradingo, said, "The big highlight of the Budget is the 35% increase in Capex following the same increment last year means the government's main focus on manufacturing and infrastructure that will automatically result in growth and employment.

"There was no negative surprise for the market in light of state elections. Overall the budget is sensible to give more fuel to the growth engine of the economy."

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