Infra stocks rally; PNC Infratech jumps nearly 8 pc

Shares of infrastructure sector companies rallied on Sunday as the Union Budget 2026 proposed to increase capex to Rs 12.2 lakh crore for FY27 to boost the sector in the country. The Budget proposes to set up an infrastructure risk guarantee fund for the infrastructure sector, Finance Minister Nirmala Sitharaman said on Sunday.

Shares of infrastructure sector companies rallied on Sunday as the Union Budget 2026 proposed to increase capex to Rs 12.2 lakh crore for FY27 to boost the sector in the country. Finance Minister Nirmala Sitharaman on Sunday presented the Union Budget 2026-27 in the Lok Sabha. Shares of PNC Infratech jumped 7.79 per cent, Sterling and Wilson Renewable Energy surged 5.15 per cent, PVV Infra advanced 4.83 per cent, Afcons Infrastructure climbed 4.65 per cent, Ashoka Buildcon rose 3.66 per cent, and JSW Infrastructure rallied 3.51 per cent on the BSE. The Budget proposes to set up an infrastructure risk guarantee fund for the infrastructure sector, Finance Minister Nirmala Sitharaman said on Sunday. ''The Union Budget 2026 places a strong emphasis on infrastructure, considering it a key driver of economic growth. This is achieved through innovative financing mechanisms and increased capital outlays to maintain momentum despite global uncertainties. ''The proposed capital expenditure for FY 2026-27 is Rs 12.2 lakh crore, a significant rise from Rs 2 lakh crore in 2014-15 and Rs 11.2 lakh crore in the previous year. While this may seem moderate compared to FY 2025-26, it aims to encourage sustained growth in the sector and boost job creation across various industries,'' Sandeep Upadhyay, Managing Director – Infrastructure Advisory at Centrum Capital, said. To attract private sector investment, an infrastructure risk guarantee fund has been announced, he added. ''The Union Budget 2026 further sustains growth momentum by adopting a balanced strategy that not only focuses on continued government spending on capital expenditure but also remains committed to the path of fiscal consolidation,'' Sharad Mathur, MD and CEO, Universal Sompo General Insurance, said. Mehul Pandya, MD and Group CEO, CareEdge Ratings, on Budget 2026, said, ''The Union Budget 2026–27 underscores a decisive push toward India's next phase of growth by scaling up manufacturing, deepening infrastructure investment, and strengthening MSMEs. ''The continued rise in capital expenditure to Rs 12.2 lakh crore signals the government's commitment to long-term capacity creation.''

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