What the Budget Promised
Budget 2026 focused on infrastructure spending (record ₹11.1 lakh crore capex), consumer income tax relief (zero tax up to ₹12 lakh), and incentives for domestic manufacturing under PLI 2.0. The market initially rallied 3% on budget day.
What Delivered
Infrastructure and capital goods delivered — L&T, Siemens, and ABB have seen strong order inflows driven by government capex. Consumer staples benefitted from the income tax relief driving rural consumption recovery — FMCG volume growth turned positive in Q3.
What Disappointed
Defence stocks ran ahead of actual order execution — several companies are still awaiting export clearances and domestic procurement approvals. The sector is down 8% from its budget-day peak. Renewable energy saw slower-than-expected tender issuance from discoms. Budget-driven themes need patience — execution timelines in government capex are rarely linear.