L&T Shares Surge 3% on Record Capex Boost in 'Structurally Positive' Budget

• Larsen & Toubro (L&T) shares rose over 3% on February 2, snapping a two-session losing streak, following Finance Minister Nirmala Sitharaman's record capital expenditure announcement.
• The Union Budget 2026 projects FY27 capex at Rs 12.2 lakh crore, a 9% increase from FY26 estimates, surpassing the previous record of Rs 11.21 lakh crore.
• Key Budget proposals include rejuvenating legacy industrial sectors, setting up an infrastructure risk guarantee fund, and dedicated REITs for CPSE real estate assets.
• Experts view the Budget as 'structurally positive' for equity markets, offering improved earnings visibility through infrastructure-led growth and policy certainty.
• L&T reported a consolidated net profit of Rs 3,215 crore for Q3 FY26, a 4% YoY fall, which included a one-time exceptional cost of Rs 1,191 crore.

Why It Matters: L&T shares gained significantly due to the Union Budget's record capital expenditure and infrastructure focus.