L&T Shares Surge 3% on Record Capex Boost in Union Budget 2026

en & Toubro (L&T) shares climbed over 3% in trade on February 2, 2026, following Finance Minister Nirmala Sitharaman's announcement of a record ₹12.2 lakh crore capital expenditure (capex) outlay for FY27 in the Union Budget 2026. The proposed capex represents a 9% increase from FY26 estimates and exceeds the current fiscal's budgeted ₹11.21 lakh crore — already the highest on record. The move reinforces the government's continued focus on infrastructure-led growth. Key highlights from the Budget relevant to infrastructure players like L&T include proposals to rejuvenate legacy industrial sectors, establish an infrastructure risk guarantee fund, and set up dedicated REITs for recycling significant real estate assets of central public sector enterprises (CPSEs). Additional measures, such as identifying high-speed rail corridors, further support long-term order visibility in EPC, railways, and related segments.