The Union Budget 2026–27 has laid out a clear roadmap for India’s next phase of economic growth. With a strong push towards infrastructure, manufacturing, green energy, healthcare, and financial stability, this Budget is not just about numbers — it’s about direction. For investors, the real question is: which stocks and sectors are likely to benefit the most in the coming months?
Let’s break it down from a market and stock-selection perspective.
Infrastructure & Capital Goods: The Biggest Winners
The government has once again reinforced its commitment to infrastructure by raising capital expenditure to ₹12.2 lakh crore, the highest ever. This sustained capex push supports companies involved in construction, engineering, cement, and heavy machinery.
Stocks to watch:
- Larsen & Toubro – A direct beneficiary of roads, railways, metros, defense, and power projects. Strong order book visibility makes L&T a core long-term play.
- UltraTech Cement – Higher infrastructure and housing activity boosts cement demand. Capacity expansion and pricing discipline strengthen the outlook.
- Siemens India – Power, automation, and rail electrification projects align well with Budget priorities.
Market view: Infrastructure stocks tend to outperform in the medium term when capex visibility remains strong. Any correction in these names may offer accumulation opportunities.
Banking & Financials: Credit Growth Tailwind Continues
A stable fiscal deficit target (4.3% of GDP) and continued economic expansion support credit growth. Banks are expected to benefit from higher loan demand in infrastructure, MSMEs, housing, and consumption.
Stocks to watch:
- ICICI Bank – Strong retail loan book, improving asset quality, and consistent earnings growth.
- State Bank of India – Infrastructure financing and corporate lending revival favor large PSU banks.
- HDFC Bank – A steady compounder benefiting from formalization of the economy.
Market view: Banking stocks usually respond positively when economic growth and capex accelerate. Select large banks may continue to outperform the broader indices.
Manufacturing, Defense & “Make in India” Theme
The Budget’s emphasis on domestic manufacturing, defense indigenization, and strategic sectors strengthens the Make in India narrative.
Stocks to watch:
- Bharat Electronics – Defense electronics orders and indigenization policies remain strong growth drivers.
- HAL – Increased defense spending and export potential support long-term growth.
- ABB India – Industrial automation and energy efficiency investments support earnings momentum.
Market view: Defense and manufacturing stocks often react with a lag but deliver strong medium-term returns once order execution accelerates.
Healthcare & Pharma: Structural Growth Story
The launch of Biopharma Shakti (₹10,000 crore) and focus on healthcare infrastructure boost the pharma and healthcare ecosystem.
Stocks to watch:
- Sun Pharma – Specialty pharma and domestic market strength.
- Dr Reddy’s – API manufacturing and global presence align with Budget intent.
- Apollo Hospitals – Healthcare demand and medical infrastructure expansion.
Market view: Pharma and healthcare offer defensive growth and may outperform during global uncertainty.
Green Energy & Power: Long-Term Compounding Theme
Customs duty rationalization for EVs, lithium-ion batteries, and renewable components strengthens India’s green transition.
Stocks to watch:
- Tata Power – Renewable energy, EV charging, and transmission growth.
- NTPC – Large renewable capacity addition pipeline.
- Adani Green – Aggressive expansion in solar and wind capacity.
Market view: Green energy remains volatile in the short term but offers strong long-term structural growth.
StocksOrbit Final Takeaway
The Union Budget 2026–27 reinforces a growth-oriented, capex-led, and manufacturing-focused economy. Sectors like infrastructure, banking, defense, healthcare, and green energy are best positioned to benefit over the next 1–3 years.
Rather than chasing immediate post-budget spikes, investors should focus on high-quality leaders within these sectors and use market corrections for accumulation. The real gains are likely to come from execution and earnings growth, not just announcements.
⚠️ Strong Disclaimer
This article is published on StocksOrbit for educational and informational purposes only.
We are NOT SEBI-registered investment advisors.
Nothing in this post should be considered as investment advice, stock recommendation, or a guarantee of returns. Stock markets are subject to market risks. Please consult a SEBI-registered financial advisor before making any investment decisions.