Budget 2026: L&T, Adani Ports and other infra stocks jump up to 4% on big capex hike to Rs 12 lakh crore

Indian infrastructure stocks saw gains after the Union Budget 2026 sharply raised capital expenditure for FY27, reinforcing the government's long-standing push to use public spending as the main engine of growth. Finance Minister Sitharaman pegged FY27 capital expenditure at Rs 12.2 lakh crore, up from around Rs 10 lakh crore in FY26. The higher allocation underlines the intent to sustain momentum in roads, railways, ports, power, urban infrastructure and logistics, even as private investment recovery remains uneven.

In early market reaction, Larsen & Toubro rose about 2%, reflecting its diversified exposure across EPC, defence, metros and urban infrastructure. Adani Ports and Special Economic Zone gained around 1%, tracking expectations of higher cargo movement and logistics-led growth. Railway-focused Rail Vikas Nigam was up 0.4%, while power transmission and EPC player KEC International added about 1%.

Road developer IRB Infrastructure Developers outperformed with a 4% rise, as higher capex keeps highway awarding and execution visibility strong. Government construction major NBCC (India) climbed around 1%, supported by expectations of continued public-sector redevelopment and housing projects.


Divam Sharma, Co-Founder and Fund Manager at Green Portfolio PMS, said the jump in capex marks "robust double-digit growth" and signals a clear policy focus on infrastructure as a growth driver.

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The higher public spending typically flows into roads, railways, airports, energy and urban development, creating a multiplier effect across construction, capital goods, steel, cement and transportation. Over the long term, this approach can improve order books, lift revenues for engineering companies and enhance overall business efficiency, supporting corporate earnings and equity valuations.

Overall, Sitharaman outlined six focus areas to accelerate growth, including scaling up manufacturing in seven strategic and frontier sectors, rejuvenating legacy industries, creating champion MSMEs, delivering a strong infrastructure push, ensuring long-term security and stability, and developing city economic regions.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)