Budget Capex Outlay of Rs 12.2 Lakh Cr Boosts Infra Stocks

Infrastructure and capital goods stocks moved higher on February 1, 2026, soon after Finance Minister Nirmala Sitharaman announced a fresh ₹12.2 lakh crore capital expenditure outlay for FY27 in the Union Budget 2026. 

The increase, coming on top of last year’s already-elevated base, reaffirmed the government’s long-standing bet on infrastructure as the backbone of economic growth and immediately put the sector back in focus on budget day.

For investors tracking the budget live time and scanning the budget highlights, the government has once again chosen to lean on public investment to drive growth, even as private capital remains selective. 

Let’s break down what the Union Budget 2026 capex push really means, how infrastructure and capital goods stocks reacted after the speech, which segments stand to benefit over the medium term, and what investors should realistically track beyond the initial budget-day move.

Union Budget: Capex Continues to Do the Heavy Lifting

Public capital expenditure has expanded sharply over the last decade. From roughly ₹2 lakh crore in FY15, government capex has climbed to ₹11.2 lakh crore in FY26 (revised estimates) and now ₹12.2 lakh crore for FY27. This steady rise has quietly reshaped how infrastructure companies plan capacity, bid for projects, and manage balance sheets.

In her Union Budget Speech, the finance minister highlighted the role of government spending in reducing early-stage project risk and improving confidence for private developers. Measures such as an Infrastructure Risk Guarantee Fund and asset monetisation through REIT structures were positioned as tools to crowd in private capital, rather than replace it.

For markets, this mattered more than one-off allocations. It suggested continuity in policy thinking and execution.

Which Stocks Reacted After Budget Today

The immediate stock market reaction after the Budget announcement time was selective. Large infrastructure and capital goods names saw interest, but the moves were far from uniform.

CG Power gained strongly, helped by robust profit growth that investors believe can be sustained in a prolonged capex cycle. GE Vernova T&D edged higher as well, following a sharp year-on-year jump in profits, reinforcing confidence in power transmission spending.

At the same time, some heavyweight names saw mild profit-taking. ABB India, Siemens, Hitachi Energy India, and Siemens Energy slipped modestly, suggesting that a large part of the capex optimism was already reflected in valuations. BHEL traded largely flat as investors waited for clearer visibility on fresh order inflows.

Budget Live Updates: Where the Spending Is Headed

Beyond the headline number, the budget live updates pointed to a few structural themes that investors are now watching closely:

• Expansion of freight and logistics corridors linking industrial clusters
• Addition of 20 national waterways over the next five years
• Launch of 7 high-speed rail corridors connecting major cities
• Continued focus on roads, ports, and multimodal transport
• Risk-mitigation mechanisms to support long-gestation projects

These initiatives extend the opportunity set beyond EPC contractors to include logistics players, power equipment suppliers, and transmission-focused companies.

How Budget 2026 Capex Translates Into Sector Impact

What Investors Should Watch After Union Budget 2026

For investors evaluating infrastructure exposure after the Union Budget, the real work begins now. Budget announcements set direction, but earnings are driven by execution. Key factors to track include order inflows over the next two quarters, working capital discipline, balance sheet strength, and the ability to convert announced projects into actual revenue.

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