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Economist Swaminathan Aiyar finds the Union Budget unremarkable. He notes a lack of bold reforms and simplification, with many small changes increasing complexity. Fiscal consolidation is marginal. The budget prioritizes stability amid strong growth. Major reforms like fertiliser subsidy abolition were avoided. Sector-specific measures are politically understandable but economically modest.
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Realty stocks fell sharply after Budget 2026 disappointed the sector with no major incentives, dragging the Nifty Realty index lower. Developers saw heavy losses amid unmet housing expectations, while REITs outperformed, supported by the governments continued focus on urban infrastructure development and asset monetisation through dedicated REIT structures.
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Indian data centre stocks experienced significant gains following a proposed tax holiday until 2047 for foreign cloud companies. This initiative aims to establish India as a global digital hub. Companies like Techno Electric, Netweb Technologies, Orient Technologies, and Anant Raj saw their shares climb. Cummins India also benefited. Adani Enterprises' stock saw a slight dip.
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The Budget 2026 allows non-resident Indians to invest in Indian equities via the Portfolio Investment Scheme, raising individual limits and the overall foreign holding cap. The move aims to deepen capital markets, broaden long-term inflows, and leverage global Indian participation, supported by evolving platforms such as GIFT City.
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Railway stocks surged up to 3% in a special Sunday trading session following the Union Budget 2026-27 announcement. Finance Minister Nirmala Sitharaman unveiled plans for seven high-speed rail corridors, boosting sentiment for wagon makers, financiers, and technology providers. This initiative is expected to drive significant investment and improve inter-city connectivity across India.
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