HUDCO Stock Surges 10%, Ending Five-Day Downturn

Shares of Housing and Urban Development Corporation (HUDCO) experienced a remarkable recovery today, surging by up to 10% after breaking a five-day losing streak. The stock had previously dropped nearly 10% during that period, but significant trading volumes helped reverse the trend.

Trading Volume and Market Activity

The increase in HUDCO's stock price was accompanied by an impressive rise in trading volumes, with over 3 crore shares exchanged on both the BSE and NSE. This volume significantly exceeded the one-month average of around 1 crore shares, signalling renewed investor interest and confidence in the stock.

Positive Developments Boosting Confidence

One of the key factors contributing to HUDCO's stock resurgence is the company's announcement regarding its ability to extend loan assistance between ₹75,000 crore and ₹1 lakh crore under the Pradhan Mantri Awas Yojana - Urban 2.0 (PMAY -U 2.0) scheme. This projected loan assistance builds upon the ₹42,000 crore already disbursed during the previous phase of PMAY, underscoring HUDCO's pivotal role in housing finance.

In addition, HUDCO recently received approval from the Reserve Bank of India (RBI) for its certificate of registration as an Infrastructure Finance Non-Banking Finance Company (NBFC). This designation enables HUDCO to have higher exposure limits for financing various infrastructure projects, which could further enhance its growth prospects.

Strategic Partnerships and Future Outlook

In August, HUDCO also signed a memorandum of understanding (MoU) with the Yamuna Expressway Industrial Development Authority (YEIDA). This partnership aims to provide long-term financial assistance for projects along the Yamuna Expressway, as well as consultancy services from project inception to completion.

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As of 2:50 PM, HUDCO shares were trading approximately 7.6% higher at ₹248 on the NSE. The stock has experienced a staggering 92% increase year-to-date, significantly outperforming the Nifty, which has returned around 16% during the same period. Over the past 12 months, HUDCO's stock has skyrocketed by 236%, while the Nifty has gained 27%.