New Delhi: Indian infrastructure stocks surged sharply on Monday after the Union Budget 2026-27 unveiled a substantial increase in public capital expenditure to ₹12.2 lakh crore for FY2026-27, reinforcing the government’s continued emphasis on infrastructure-led economic growth.
The budgetary boost, announced by Finance Minister Nirmala Sitharaman, was well received on Dalal Street, with key infrastructure names such as Larsen & Toubro (L&T) and Adani Ports rallying up to 4% in early trades, while other players like PNC Infratech, GR Infraprojects and Techno Electric & Engineering Company also saw notable gains.
The capex hike — up from around ₹11.2 lakh crore in the current fiscal — underscores the government’s intent to sustain the momentum of public spending in core sectors including roads, railways, ports, power, urban infrastructure and logistics, key drivers of long-term economic expansion.
The elevated capex provides clearer visibility on future order books for engineering, procurement and construction (EPC) firms and infrastructure developers, helping to lift sentiment in a segment that had been awaiting fresh policy impetus amid moderating private investment.
Stocks beyond traditional EPC firms also felt the ripple effect. Broad market indices, including the Nifty 50 and BSE Sensex, opened on a positive note as investors positioned for growth continuity backed by elevated government spending. Heavyweights in capital goods and services saw mixed movements — while some specialists like ABB India and Siemens experienced mild profit-taking, others such as CG Power posted gains, reflecting sector-specific flows amid heightened capex expectations.