L&T Share Price Jumps 3% To ₹3,930 As Budget Capex Push Lifts Capital Goods Stocks

Larsen & Toubro (L&T) share price (NSE: LT) climbed about 3% in Monday’s intraday trade, touching around ₹3,930 on the BSE. The stock recovered fully from Sunday’s Budget-day losses, when it had fallen nearly 3%. By mid-morning, L&T was trading close to ₹3,920, outperforming the broader market. The stock remains below its record high of about ₹4,195 hit in early January.

Budget 2026 Gives A Big Boost to Capex Outlook

The key reason behind the rise is the Budget’s strong focus on capital expenditure. The government has proposed FY27 capex of ₹12.21 trillion, up 11.5% year-on-year, keeping capex at 3.1% of GDP. This signals sustained spending on infrastructure, which directly benefits companies like L&T.

Railways, Energy And Manufacturing In Focus

The Budget announced 7 high-speed rail corridors and extended customs duty exemptions for nuclear power projects, critical minerals, battery energy storage systems and solar glass inputs. These steps are expected to lower project costs and support faster execution in power, railways, renewables and heavy engineering.

Read More: India’s Cotton Imports Surge 158% YoY in December Quarter Amid Duty-Free Import.

Conclusion

L&T’s 3% rise reflects investor confidence in the Budget’s capex-driven growth story. With rail, energy and infrastructure spending set to remain strong, L&T appears well placed for steady growth over the medium to long term.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.