Union Budget 2026: FM announced Rs 12.2 lakh cr capex; infra stocks zoom up to 16%
Infrastructure stocks gained momentum on Sunday after the finance minister Nirmala Sitharaman announced a capital expenditure fund of Rs 12.2 lakh crore for the year 2026-27.
- Feb 1, 2026,
- Updated Feb 1, 2026 1:52 PM IST
Infrastructure stocks gained momentum on Sunday after the finance minister Nirmala Sitharaman announced a capital expenditure fund (capex fund) of Rs 12.2 lakh crore to push Infra for the year 2026-27. It is nearly 10 per cent higher allocation from the previous year, announced at Rs 11.1 lakh crore. The government also announced the establishment of an Infrastructure Risk Guarantee Fund (IRGF). The government also announced plans to launch a scheme for sectors including construction, manufacturing, capital goods and infra equipment. Following the announcement, stocks like Seamec, PNC Infratech, GR Infraprojects, Interarch Building Products, Techno Electric & Engineering Company, Garuda Constructions surged up to 10 per cent. Power Companies including Waaree Technologies, Orient Green Power Company, RattanIndia Power were up 6-16 per cent for the day. Cement stocks including Saurashtra Cements, Andhra Cement, ITD Cementation, NLC India, Sagar Cement, Shiva Cement gained 2-5 per cent each. Capital Goods companies including Quality Power Electrical, CG Power, Skipper, BHEL, KP Green Engineering and others gained 3-5 per cent each. This represents robust double-digit growth, signaling a strong policy focus on infrastructure development as a key driver of economic expansion. Higher capex allocation typically translates into increased spending, which not only stimulates demand in construction and ancillary sectors but also creates a multiplier effect across the economy, said Divam Sharma, Co Founder and Fund Manager at Green Portfolio PMS. "In the long term, such aggressive capex can have several long-term implications. Infrastructure and heavy engineering companies are likely to see improved order books and revenue growth. Sectors like steel, cement, power, and transportation could benefit from sustained demand. Improved infrastructure enhances overall business efficiency, potentially boosting corporate earnings across industries," he said. To scale up manufacturing in strategic and frontier sectors, the Union Finance Minister Nirmala Sitharaman proposed to launch:, Biopharma SHAKTI, India Semiconductor Mission 2.0, Electronics Components Manufacturing Scheme, Dedicated Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu, 3 dedicated Chemical Parks and Scheme to revive 200 legacy industrial clusters.
Fiscal discipline remains key, with the deficit guided to 4.3% of GDP, supporting stable interest rates and controlled inflation. Public capital expenditure of Rs 12.2 lakh crore signals productivity-led growth, creating jobs and income opportunities, said Sachin Jain, Managing Partner at Scripbox.
Infrastructure stocks gained momentum on Sunday after the finance minister Nirmala Sitharaman announced a capital expenditure fund (capex fund) of Rs 12.2 lakh crore to push Infra for the year 2026-27. It is nearly 10 per cent higher allocation from the previous year, announced at Rs 11.1 lakh crore. The government also announced the establishment of an Infrastructure Risk Guarantee Fund (IRGF). The government also announced plans to launch a scheme for sectors including construction, manufacturing, capital goods and infra equipment. Following the announcement, stocks like Seamec, PNC Infratech, GR Infraprojects, Interarch Building Products, Techno Electric & Engineering Company, Garuda Constructions surged up to 10 per cent. Power Companies including Waaree Technologies, Orient Green Power Company, RattanIndia Power were up 6-16 per cent for the day. Cement stocks including Saurashtra Cements, Andhra Cement, ITD Cementation, NLC India, Sagar Cement, Shiva Cement gained 2-5 per cent each. Capital Goods companies including Quality Power Electrical, CG Power, Skipper, BHEL, KP Green Engineering and others gained 3-5 per cent each. This represents robust double-digit growth, signaling a strong policy focus on infrastructure development as a key driver of economic expansion. Higher capex allocation typically translates into increased spending, which not only stimulates demand in construction and ancillary sectors but also creates a multiplier effect across the economy, said Divam Sharma, Co Founder and Fund Manager at Green Portfolio PMS. "In the long term, such aggressive capex can have several long-term implications. Infrastructure and heavy engineering companies are likely to see improved order books and revenue growth. Sectors like steel, cement, power, and transportation could benefit from sustained demand. Improved infrastructure enhances overall business efficiency, potentially boosting corporate earnings across industries," he said. To scale up manufacturing in strategic and frontier sectors, the Union Finance Minister Nirmala Sitharaman proposed to launch:, Biopharma SHAKTI, India Semiconductor Mission 2.0, Electronics Components Manufacturing Scheme, Dedicated Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu, 3 dedicated Chemical Parks and Scheme to revive 200 legacy industrial clusters.
Fiscal discipline remains key, with the deficit guided to 4.3% of GDP, supporting stable interest rates and controlled inflation. Public capital expenditure of Rs 12.2 lakh crore signals productivity-led growth, creating jobs and income opportunities, said Sachin Jain, Managing Partner at Scripbox.