Budget 2026: Anant Raj, other stocks jump up to 10% as FM announces tax holiday to turn India into data centre hub

Indian data centre linked stocks saw sharp moves after the finance minister proposed a long tax holiday to attract global cloud companies to set up and serve the world from India. The proposal offers a tax holiday until 2047 for foreign companies that provide global cloud services using data centres located in India, provided services to Indian customers are routed through an Indian reseller. The move is aimed at positioning India as a critical node in global digital infrastructure.

Shares of Techno Electric and Engineering surged 8% as investors bet on higher data centre construction and power infrastructure demand. The company is already expanding into data centre projects and smart meter installations, both of which are seeing strong policy backing.

Netweb Technologies rose 6%, extending its recent rally. Netweb supplies high performance computing servers and supercomputing solutions that are closely linked to large data centre and cloud deployments. With hyperscalers and global cloud players expected to expand capacity in India, demand for advanced servers and computing infrastructure could remain strong, though analysts caution that the stock has already priced in a lot of optimism.

Orient Technologies jumped 9% as investors played the broader enterprise and data centre services theme. The company operates in IT infrastructure and services, which could see higher order inflows as cloud and data centre ecosystems deepen.

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On the real estate side, Anant Raj climbed 10%. The company has been aggressively building data centre parks in the Delhi NCR region, with several facilities already operational. Emkay Global has highlighted Anant Raj as a key beneficiary of India’s data centre build out, with a target price of Rs 800, implying meaningful upside from current levels.
Cummins India gained 1%. Nomura expects sustained growth in power demand from data centres, hospitals and real estate, which is supportive for genset and power solution suppliers.In contrast, Adani Enterprises slipped 0.7%. The company is building a pan India data centre network through its AdaniConneX joint venture with EdgeConneX.

The proposed tax holiday could be a long term structural positive for AI and data centre ecosystem stocks. By lowering the effective tax burden and offering policy certainty until 2047, the government is signalling that data centres and cloud infrastructure are strategic priorities.

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