{"id":17767,"date":"2026-02-03T23:52:07","date_gmt":"2026-02-03T18:22:07","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=17767"},"modified":"2026-02-04T13:42:18","modified_gmt":"2026-02-04T08:12:18","slug":"union-budget-2026","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/","title":{"rendered":"Union Budget 2026 Explained: Key Highlights &amp; Market Impact"},"content":{"rendered":"\n<p>Finance Minister Nirmala Sitharaman presented her ninth consecutive Union Budget in Parliament on 1st February 2026 for FY 2026-27. As with every Budget Day, the announcements quickly shaped stock market behaviour. Despite being presented on a Sunday through a special trading session, the Budget triggered sharp moves across equity markets. The Nifty 50 ended the day down nearly 2%, while most sectoral indices closed in the red. Nifty IT was the only major index that finished with gains, supported by clarity on tax and policy measures for the sector.<\/p>\n\n\n\n<p>In this blog, we cover the key Union Budget 2026 announcements and track how the stock market reacted at different stages during the Budget speech.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#Stock-Market-Reaction-to-Union-Budget-FY-2026-27\" title=\"Stock Market Reaction to Union Budget FY 2026-27\">Stock Market Reaction to Union Budget FY 2026-27<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#Top-Sectors-in-Focus-After-Union-Budget-2026\" title=\"Top Sectors in Focus After Union Budget 2026\">Top Sectors in Focus After Union Budget 2026<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#Union-Budget-2026-27-for-Manufacturing-Sector\" title=\"Union Budget 2026-27 for Manufacturing Sector\">Union Budget 2026-27 for Manufacturing Sector<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#Electronics-Semiconductor-Equipment-Sector\" title=\"Electronics &amp; Semiconductor Equipment Sector\">Electronics &amp; Semiconductor Equipment Sector<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#Union-Budget-2026-27-for-Pharmaceutical-Sector\" title=\"Union Budget 2026-27 for Pharmaceutical Sector\">Union Budget 2026-27 for Pharmaceutical Sector<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#Union-Budget-2026-27-for-Information-Technology-Digital-Services-Sector\" title=\"Union Budget 2026-27 for Information Technology &amp; Digital Services Sector\">Union Budget 2026-27 for Information Technology &amp; Digital Services Sector<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#Union-Budget-2026-27-for-the-Healthcare-Sector\" title=\"Union Budget 2026-27 for the Healthcare Sector\">Union Budget 2026-27 for the Healthcare Sector<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#Infrastructure-Railways-Logistics\" title=\"Infrastructure, Railways &amp; Logistics\">Infrastructure, Railways &amp; Logistics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#MSMEs-and-SMEs-Union-Budget-2026-27\" title=\"MSMEs and SMEs: Union Budget 2026-27\">MSMEs and SMEs: Union Budget 2026-27<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#Textiles-Leather-Labour-Intensive-Sectors\" title=\"Textiles, Leather &amp; Labour-Intensive Sectors\">Textiles, Leather &amp; Labour-Intensive Sectors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#Other-Sectors-in-Focus-After-Union-Budget-2026\" title=\"Other Sectors in Focus After Union Budget 2026\">Other Sectors in Focus After Union Budget 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#Union-Budget-2026%E2%80%9327-Key-Taxation-Updates\" title=\"Union Budget 2026\u201327: Key Taxation Updates\">Union Budget 2026\u201327: Key Taxation Updates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#Union-Budget-2026-Top-Gainers\" title=\"Union Budget 2026: Top Gainers\">Union Budget 2026: Top Gainers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#Union-Budget-2026-Top-Losers\" title=\"Union Budget 2026: Top Losers\">Union Budget 2026: Top Losers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#What-Does-Union-Budget-2026-Indicate-for-Indian-Equity-Markets\" title=\"What Does Union Budget 2026 Indicate for Indian Equity Markets?\">What Does Union Budget 2026 Indicate for Indian Equity Markets?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#Frequently-Asked-Questions-on-Union-Budget-2026\" title=\"Frequently Asked Questions on Union Budget 2026\">Frequently Asked Questions on Union Budget 2026<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#1-What-does-Union-Budget-2026-cover\" title=\"1. What does Union Budget 2026 cover?\">1. What does Union Budget 2026 cover?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#2-What-are-the-highlights-of-Budget-2026\" title=\"2. What are the highlights of Budget 2026?\">2. What are the highlights of Budget 2026?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#3-How-did-the-stock-market-respond-to-Budget-2026\" title=\"3. How did the stock market respond to Budget 2026?\">3. How did the stock market respond to Budget 2026?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#4-What-caused-volatility-during-the-Budget-session\" title=\"4. What caused volatility during the Budget session?\">4. What caused volatility during the Budget session?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#5-Which-sectors-appeared-more-stable-after-the-Budget\" title=\"5. Which sectors appeared more stable after the Budget?\">5. Which sectors appeared more stable after the Budget?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.tickertape.in\/blog\/union-budget-2026\/#6-Which-sectors-came-under-pressure\" title=\"6. Which sectors came under pressure?\">6. Which sectors came under pressure?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stock-Market-Reaction-to-Union-Budget-FY-2026-27\"><\/span>Stock Market Reaction to Union Budget FY 2026-27<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Union Budget 2026 witnessed sharp 1D movements in the Indian equity market during the special Sunday trading session. Stock prices fluctuated as investors responded to policy announcements, tax changes, and updates on government spending. Here\u2019s the timeline on investors\u2019 sentiment during the budget speech &#8211;<\/p>\n\n\n\n<ul>\n<li><strong>Early Optimism During the Speech: <\/strong>Markets started the session on a firm note while the Finance Minister delivered the Budget speech. The NSE Nifty rose 95.30 points, or 0.38%, to 25,415.95. The initial rise reflected expectations of policy continuity and sustained public investment.<\/li>\n\n\n\n<li><strong>Selling Pressure After STT Revision: <\/strong>Market sentiment weakened after the announcement of a higher Securities Transaction Tax (STT) on derivatives. Selling activity increased across <a href=\"https:\/\/www.tickertape.in\/stocks\/collections\/largecap-stocks\">large-cap stocks<\/a>. By 12:28 PM, Nifty declined 534.25 points, or 2.11%, to 24,786.40. Volatility picked up as traders recalibrated positions.<\/li>\n\n\n\n<li><strong>Indices Close Lower: <\/strong>Despite brief stabilisation attempts, benchmarks ended the session in the red. The Nifty 50 settled at 24,825.45, a decline of 495.20 points, or 1.96%. The close highlighted continued pressure following the tax-related measures.<\/li>\n\n\n\n<li><strong>Uneven Sector Performance: <\/strong>Sector-level movement remained mixed through the day. Select <a href=\"https:\/\/www.tickertape.in\/stocks\/collections\/healthcare-stocks\">stocks in healthcare<\/a>, pharmaceuticals, and IT showed relative stability. In contrast, stocks more sensitive to derivatives trading and valuation concerns faced stronger selling pressure.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Top-Sectors-in-Focus-After-Union-Budget-2026\"><\/span>Top Sectors in Focus After Union Budget 2026<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Union Budget 2026 highlighted several sectors that align with the government\u2019s focus on capital investment, domestic production, and supply-chain resilience. Manufacturing stood out as a key priority, supported by higher public spending, cost-relief measures, and policy continuity.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Union-Budget-2026-27-for-Manufacturing-Sector\"><\/span>Union Budget 2026-27 for Manufacturing Sector<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Union Budget 2026 kept manufacturing at the centre of the government\u2019s growth strategy. The announcements focused on higher public spending, lower input costs, and measures to support domestic production and capacity utilisation.<\/p>\n\n\n\n<ul>\n<li><strong>Higher Public Spending<\/strong>: Capital expenditure for FY27 increased to Rs. 12.2 lakh cr., supporting demand for industrial goods, machinery, and construction-linked manufacturing. The higher capex allocation continued to anchor manufacturing activity through infrastructure and public works.<\/li>\n\n\n\n<li><strong>Support for Energy Storage Manufacturing<\/strong>: Customs duty exemptions were extended to capital goods used in battery energy storage systems, reducing input costs for manufacturers linked to clean energy and power storage.<\/li>\n\n\n\n<li><strong>Boost to Domestic Container Manufacturing<\/strong>: A Rs. 10,000 cr. outlay was announced to develop domestic container manufacturing over five years. The move aims to reduce import dependence and strengthen manufacturing linked to logistics and ports.<\/li>\n\n\n\n<li><strong>Precision Manufacturing Enablement<\/strong>: The Budget proposed the setup of specialised toolrooms across industrial clusters. These facilities will help manufacturers, especially MSMEs, produce high-precision components at scale.<\/li>\n\n\n\n<li><strong>Capacity Utilisation Relief for SEZ Units<\/strong>: SEZ manufacturing units received a one-time concessional duty option to sell goods in the domestic market. This measure addresses underutilised capacity caused by global trade disruptions.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Electronics-Semiconductor-Equipment-Sector\"><\/span>Electronics &amp; Semiconductor Equipment Sector<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Union Budget 2026 placed strong emphasis on building a full electronics and semiconductor ecosystem in India. The focus moved beyond chip fabrication to include equipment, materials, design capability, and supply-chain depth.<\/p>\n\n\n\n<ul>\n<li><strong>Semiconductor Ecosystem Expansion<\/strong>: The government announced India Semiconductor Mission (ISM) 2.0, extending policy support to semiconductor equipment, specialised materials, testing, packaging, and Indian-owned design IP. The move aims to strengthen end-to-end domestic capabilities.<\/li>\n\n\n\n<li><strong>Higher Allocation for Components Manufacturing<\/strong>: The outlay for the Electronics Components Manufacturing Scheme increased to Rs<strong>.<\/strong>  40,000 cr., up from Rs<strong>.<\/strong> 22,919 cr. earlier. The higher allocation reflects the intent to scale domestic production of electronic components.<\/li>\n\n\n\n<li><strong>Support for Fabless and Design-Led Firms<\/strong>: Policy measures encouraged fabless semiconductor companies, focusing on \u201cDesigned in India\u201d chips that integrate into global supply chains rather than only domestic fabrication.<\/li>\n\n\n\n<li><strong>Input Cost Rationalisation<\/strong>: The Budget announced customs duty rationalisation on key electronic inputs, lowering manufacturing costs and improving cost competitiveness for electronics manufacturers.<\/li>\n\n\n\n<li><strong>Linkage with Digital Infrastructure<\/strong>: Electronics manufacturing support aligned with broader investments in <a href=\"https:\/\/www.tickertape.in\/stocks\/collections\/data-center-stocks\">data centres<\/a>, AI infrastructure, and digital public platforms, reinforcing demand for advanced electronic hardware.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Union-Budget-2026-27-for-Pharmaceutical-Sector\"><\/span>Union Budget 2026-27 for Pharmaceutical Sector<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Union Budget 2026 offered targeted support to the <a href=\"https:\/\/www.tickertape.in\/stocks\/collections\/pharma-stocks\">pharmaceutical<\/a> sector, with a clear shift towards research, innovation, and advanced manufacturing. The focus stayed on strengthening long-term capabilities rather than expanding volume-led production.<\/p>\n\n\n\n<ul>\n<li><strong>Biopharma-Focused Policy Direction<\/strong>: The Budget announced a dedicated Bio-Pharma Strategy to position India as a global hub for advanced drug development, biologics, and complex therapies.<\/li>\n\n\n\n<li><strong>Funding for Research and Innovation<\/strong>: An allocation of Rs<strong>.<\/strong>  10,000 cr. under the Biopharma SHAKTI initiative was announced to support drug discovery, clinical research, and high-value pharmaceutical development.<\/li>\n\n\n\n<li><strong>Expansion of Research Infrastructure<\/strong>: The government proposed the expansion of NIPER institutions and the setup of 1,000 clinical trial sites to improve research depth, regulatory readiness, and approval timelines.<\/li>\n\n\n\n<li><strong>Customs Duty Relief on Key Inputs<\/strong>: Select raw materials and inputs used in pharmaceutical manufacturing received customs duty exemptions, aimed at lowering production costs and supporting exports.<\/li>\n\n\n\n<li><strong>Support for Traditional Medicine Systems<\/strong>: Budget 2026 increased allocation to the AYUSH ministry and announced three new All India Institutes of Ayurveda, strengthening institutional support for traditional healthcare systems.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Union-Budget-2026-27-for-Information-Technology-Digital-Services-Sector\"><\/span>Union Budget 2026-27 for Information Technology &amp; Digital Services Sector<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Union Budget 2026 introduced structural changes aimed at reducing tax uncertainty and improving long-term clarity for India\u2019s <a href=\"https:\/\/www.tickertape.in\/stocks\/collections\/it-support-and-services-stocks\">IT support and services i<\/a>ndustry. The measures focused on compliance simplification rather than short-term incentives.<\/p>\n\n\n\n<ul>\n<li><strong>Unified Classification for IT Services<\/strong>: The Budget grouped software development, IT-enabled services, knowledge process outsourcing, and contract R&amp;D under a single category called Information Technology Services. The change reduces ambiguity in tax treatment across service lines.<\/li>\n\n\n\n<li><strong>Simplified Safe Harbour Framework<\/strong>: A uniform safe harbour margin of 15.5% replaced multiple earlier thresholds. The revision standardised transfer pricing norms for <a href=\"https:\/\/www.tickertape.in\/stocks\/collections\/it-stocks\">IT <\/a>service providers.<\/li>\n\n\n\n<li><strong>Expanded Eligibility for Mid-Sized Firms<\/strong>: The turnover limit to qualify for safe harbour benefits increased from Rs<strong>.<\/strong>  300 cr. to Rs<strong>.<\/strong>  2,000 cr., extending coverage to a larger base of mid-sized IT companies.<\/li>\n\n\n\n<li><strong>Automated Compliance Process<\/strong>: Safe harbour approvals will shift to an automated, rule-based system, reducing litigation risk and manual assessments in transfer pricing cases.<\/li>\n\n\n\n<li><strong>Data Centre-Led Digital Push<\/strong>: A tax holiday until 2047 was announced for global cloud service providers using Indian data centres. The move strengthens India\u2019s position as a digital infrastructure and data services hub.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Union-Budget-2026-27-for-the-Healthcare-Sector\"><\/span>Union Budget 2026-27 for the Healthcare Sector<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Union Budget 2026 focused on strengthening healthcare capacity through workforce expansion, infrastructure development, and medical tourism. The measures aimed to improve long-term service delivery rather than short-term spending.<\/p>\n\n\n\n<ul>\n<li><strong>Medical Tourism Infrastructure<\/strong>: The Budget proposed five regional medical tourism hubs through public\u2013private partnerships. These hubs will integrate hospitals, diagnostics, education, and post-treatment care facilities.<\/li>\n\n\n\n<li><strong>Workforce Capacity Expansion<\/strong>: The government announced the addition of one lakh allied health professionals over five years to address gaps in diagnostics, nursing, and rehabilitation services.<\/li>\n\n\n\n<li><strong>Caregiver Training Programme<\/strong>: A dedicated plan to train 1.5 lakh caregivers was introduced to support elderly care, long-term care, and post-acute healthcare services.<\/li>\n\n\n\n<li><strong>Mental Healthcare Infrastructure<\/strong>: The Budget announced the setup of NIMHANS 2.0 in North India, along with upgrades to national mental health institutes to expand access to specialised mental healthcare.<\/li>\n\n\n\n<li><strong>Emergency Care Strengthening<\/strong>: Emergency and trauma care capacity in district hospitals will increase by 50%, improving response capability in critical care situations.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Infrastructure-Railways-Logistics\"><\/span>Infrastructure, Railways &amp; Logistics<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Union Budget 2026 kept infrastructure spending at the centre of public investment, with a clear push towards transport connectivity, logistics efficiency, and private capital participation.<\/p>\n\n\n\n<ul>\n<li><strong>Higher Capital Outlay<\/strong>: Capital expenditure for FY27 was raised to  Rs. 12.2 lakh cr., marking the highest-ever allocation. The increase supported continued spending on roads, railways, ports, and urban infrastructure.<\/li>\n\n\n\n<li><strong>Railway Network Expansion<\/strong>: Railways received a capital allocation of  Rs. 2.77 lakh cr., focused on rolling stock upgrades, safety systems, and capacity expansion across key routes.<\/li>\n\n\n\n<li><strong>High-Speed Rail Corridors<\/strong>: The Budget announced seven new high-speed rail corridors to improve inter-city travel and reduce transit time between major economic centres.<\/li>\n\n\n\n<li><strong>Inland Waterways Development<\/strong>: The government proposed making 20 national waterways operational over the next five years, aimed at lowering logistics costs and easing pressure on road and rail transport.<\/li>\n\n\n\n<li><strong>Private Capital Participation<\/strong>: An Infrastructure Risk Guarantee Fund was introduced to reduce construction-phase risks and attract private investment into large infrastructure projects.<\/li>\n\n\n\n<li><strong>Urban Infrastructure Financing<\/strong>: Incentives for municipal bonds and <a href=\"https:\/\/www.tickertape.in\/stocks\/collections\/reit-stocks\">REITs<\/a> were announced to support funding for urban transport, housing, and civic infrastructure projects.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"MSMEs-and-SMEs-Union-Budget-2026-27\"><\/span>MSMEs and SMEs: Union Budget 2026-27<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Union Budget 2026 positioned MSMEs as a key pillar for employment generation, manufacturing depth, and export growth. The measures focused on improving access to capital, easing compliance, and strengthening production capability.<\/p>\n\n\n\n<ul>\n<li><strong>Dedicated Growth Capital<\/strong>: The Budget announced a  Rs. 10,000 cr. SME Growth Fund to support expansion, capacity building, and job creation across small and mid-sized enterprises.<\/li>\n\n\n\n<li><strong>Improved Capital Access<\/strong>: Investment limits for non-resident investors in listed companies were raised, helping MSMEs tap a wider pool of long-term capital.<\/li>\n\n\n\n<li><strong>Manufacturing Capability Support<\/strong>: Specialised toolrooms will be set up across industrial clusters to help MSMEs manufacture high-precision components and reduce dependence on imports.<\/li>\n\n\n\n<li><strong>SEZ Capacity Relief<\/strong>: A one-time concessional duty window allowed eligible SEZ units to sell goods in the domestic market, improving capacity utilisation during global trade disruptions.<\/li>\n\n\n\n<li><strong>Compliance Simplification<\/strong>: The Budget introduced measures to simplify tax and regulatory processes, easing working-capital pressure and operational burden for smaller firms.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Textiles-Leather-Labour-Intensive-Sectors\"><\/span>Textiles, Leather &amp; Labour-Intensive Sectors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Union Budget 2026 continued its focus on labour-intensive industries, with measures aimed at improving competitiveness, upgrading skills, and supporting exports. The announcements centred on modernising clusters and strengthening domestic supply chains.<\/p>\n\n\n\n<ul>\n<li><strong>Unified Textile Programme<\/strong>: The Budget proposed a consolidated framework by merging multiple textile schemes. This approach aims to improve execution, reduce overlap, and scale up support across the textile value chain.<\/li>\n\n\n\n<li><strong>Skilling and Workforce Support<\/strong>: Samarth 2.0 was introduced to expand advanced skill training in <a href=\"https:\/\/www.tickertape.in\/stocks\/collections\/textile-stocks\">textiles<\/a> and apparel. The programme focuses on improving productivity and employability across manufacturing hubs.<\/li>\n\n\n\n<li><strong>Raw Material Security<\/strong>: A National Fibre Scheme was announced to improve the availability of natural and man-made fibres. The move seeks to reduce import dependence and stabilise input supply for textile producers.<\/li>\n\n\n\n<li><strong>Cluster Modernisation<\/strong>: Existing textile clusters will receive targeted support to upgrade technology, expand capacity, and improve energy efficiency, helping firms compete in global markets.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.tickertape.in\/stocks\/collections\/leather-stocks\"><strong>Leather<\/strong><\/a><strong> Export Competitiveness<\/strong>: The Budget allowed duty-free imports of specified inputs for leather exporters, lowering production costs and supporting export-oriented manufacturing.<\/li>\n\n\n\n<li><strong>Rural and Artisan Linkages<\/strong>: Labour-intensive segments such as handloom, handicrafts, and village industries were aligned with branding and market-access initiatives under broader rural development programmes.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other-Sectors-in-Focus-After-Union-Budget-2026\"><\/span>Other Sectors in Focus After Union Budget 2026<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Beyond core manufacturing and services, the Union Budget 2026 introduced targeted measures across several supporting sectors. These updates extended policy impact to energy, telecom, tourism, and creative industries.<\/p>\n\n\n\n<ul>\n<li><strong>Renewable Energy &amp; Green Infrastructure: <\/strong>Customs duty exemptions continued for capital goods used in battery energy storage systems, lowering setup costs for grid-scale and renewable-linked storage projects. A  Rs. 20,000 cr. programme was announced for carbon capture and utilisation, targeting high-emission sectors such as steel and cement.<\/li>\n\n\n\n<li><strong>Telecom: <\/strong>The Ministry of Communications received Rs. 73,990 cr., driven by capital infusion and network expansion plans. Funding will support BharatNet rollout, spectrum-related costs, and nationwide telecom infrastructure upgrades, including BSNL revival efforts.<\/li>\n\n\n\n<li><strong>Sports &amp; Creative Industries: <\/strong>The sports goods sector received a first-time allocation of  Rs. 500 cr., supporting domestic production and cluster development. Policy backing continued for AVGC and Orange Economy segments, including content creator labs in schools and colleges to build long-term talent pipelines.<\/li>\n\n\n\n<li><strong>Tourism &amp; Cultural Infrastructure: <\/strong>Fifteen archaeological sites will be developed as cultural destinations to boost tourism-linked economic activity. Tourism initiatives aligned with healthcare and sustainability goals, complementing investments in medical tourism hubs and eco-tourism circuits.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Union-Budget-2026%E2%80%9327-Key-Taxation-Updates\"><\/span>Union Budget 2026\u201327: Key Taxation Updates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Tax Category<\/strong><\/td><td><strong>Change Announced in Budget 2026<\/strong><\/td><\/tr><tr><td>Securities Transaction Tax (STT)<\/td><td>STT on futures increased to 0.05% from 0.02%<\/td><\/tr><tr><td>TCS on Overseas Medical Treatment<\/td><td>2% TCS applies only when remittance exceeds Rs.10 lakh (earlier Rs.2 lakh)<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/stocks\/collections\/aviation-stocks\">Aviation<\/a> Manufacturing \u2013 Customs Duty<\/td><td>BCD exempted on aircraft components and parts<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/stocks\/collections\/defence-stocks\">Defence<\/a> Aviation MRO \u2013 Customs Duty<\/td><td>BCD exempted on raw materials for defence MRO<\/td><\/tr><tr><td>Healthcare &amp; Pharmaceuticals \u2013 Customs Duty<\/td><td>Duty exemption extended to select critical and rare-disease medicines<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/stocks\/collections\/electronic-stocks\">Electronics<\/a> &amp; Semiconductors \u2013 Indirect Tax<\/td><td>Duty rationalisation on key inputs and capital goods<\/td><\/tr><tr><td>SEZ Manufacturing Units<\/td><td>One-time concessional duty allowed for DTA sales<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Union-Budget-2026-Top-Gainers\"><\/span>Union Budget 2026: Top Gainers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>On 1st February 2026, stock markets moved sharply after key Budget announcements, with indices reacting to changes in taxes and sector-level measures. Despite the broader market decline, a few stocks closed at higher levels. Below is a snapshot of the top gainers on Budget Day.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Company<\/strong><\/td><td><strong>Last Price (Rs.)<\/strong><\/td><td><strong>Change (Rs.)<\/strong><\/td><td><strong>% Change<\/strong><\/td><td><strong>Market Cap (Rs. Cr)<\/strong><\/td><\/tr><tr><td>Global Health<\/td><td>1,120.10<\/td><td>66.3<\/td><td>6.29%<\/td><td>30,107.21<\/td><\/tr><tr><td>Anant Raj<\/td><td>531.05<\/td><td>26.75<\/td><td>5.30%<\/td><td>19,111.26<\/td><\/tr><tr><td>Netweb Technologies<\/td><td>3,305.70<\/td><td>161<\/td><td>5.12%<\/td><td>18,728.07<\/td><\/tr><tr><td>Amber Enterprises<\/td><td>5,993.00<\/td><td>277<\/td><td>4.85%<\/td><td>21,078.60<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Disclaimer<\/strong>: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Union-Budget-2026-Top-Losers\"><\/span>Union Budget 2026: Top Losers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>On 1st February 2026, several stocks declined during the Budget Day session as markets reacted to higher transaction taxes, valuation concerns, and near-term policy uncertainty.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-Does-Union-Budget-2026-Indicate-for-Indian-Equity-Markets\"><\/span>What Does Union Budget 2026 Indicate for Indian Equity Markets?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Union Budget 2026 sent mixed signals to the stock market, combining fiscal discipline with continued public spending. Market reaction reflected a balance between long-term policy direction and short-term cost concerns.<\/p>\n\n\n\n<ul>\n<li><strong>Focus on Fiscal Stability: <\/strong>The government set the fiscal deficit for FY27 at 4.3% of GDP, slightly lower than 4.4% in FY26. Gross borrowing stood at Rs. 11.7 lakh cr., showing an effort to manage finances while supporting growth.<\/li>\n\n\n\n<li><strong>Public Spending Remains Strong: <\/strong>\u00a0Capital expenditure increased to Rs<strong>.<\/strong> 12.2 lakh cr., up from Rs. 11.2 lakh cr. last year. This kept infrastructure, manufacturing, transport, and logistics in focus, as these sectors depend heavily on government spending.<\/li>\n\n\n\n<li><strong>Clear Sector Priorities: <\/strong>&nbsp;The Budget outlined targeted measures for manufacturing, defence, electronics, IT, pharmaceuticals, healthcare, <a href=\"https:\/\/www.tickertape.in\/stocks\/collections\/msme-stocks\">MSMEs<\/a>, and labour-intensive sectors. These steps improved policy visibility but did not lead to immediate, broad market gains.<\/li>\n\n\n\n<li><strong>Tax Changes Drove Volatility: <\/strong>&nbsp;The rise in STT on futures to 0.05% increased trading costs. This triggered profit booking and sharper intraday swings, especially in derivatives-linked stocks.<\/li>\n\n\n\n<li><strong>Selective Market Response: <\/strong>&nbsp;Markets turned volatile on Budget Day and closed lower. Some healthcare, pharma, and IT stocks held up better, while metals, financials, and FMCG stocks faced pressure. The reaction stayed stock- and sector-specific rather than market-wide.<\/li>\n\n\n\n<li><strong>Overall Takeaway: <\/strong>&nbsp;Union Budget 2026 reinforced long-term growth through public investment while keeping fiscal control in place. Stock market moves showed short-term volatility, with investors focusing more on sector-level impact than on a broad market trend.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Union Budget 2026 triggered high volatility in the stock market, with stocks reacting differently to tax changes, sector-specific announcements, and higher capital spending. The mixed movement showed that Budget reactions remain stock- and sector-specific rather than broad-based.<\/p>\n\n\n\n<p>Such phases highlight the importance of doing independent research before making decisions. Using tools like the <a href=\"https:\/\/www.tickertape.in\/screener\/home\/equity\">Tickertape Stock Screener<\/a>, which offers over 200 filters, can help analyse stocks based on fundamentals, valuations, and sector exposure, especially during periods of policy-driven market volatility.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently-Asked-Questions-on-Union-Budget-2026\"><\/span>Frequently Asked Questions on Union Budget 2026<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1770142438423\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"1-What-does-Union-Budget-2026-cover\"><\/span><strong>1. What does Union Budget 2026 cover?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Union Budget 2026 outlines the government\u2019s spending plans, revenue assumptions, and policy priorities for FY 2026\u201327. It includes details on taxation, capital expenditure, fiscal targets, and sector-wise support measures.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1770142472541\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"2-What-are-the-highlights-of-Budget-2026\"><\/span><strong>2. What are the highlights of Budget 2026?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Key highlights of the budget 2026-27 included higher capital expenditure at Rs<strong>.<\/strong> 12.2 lakh cr., a fiscal deficit target of 4.3% of GDP for FY27, and focused policy measures for sectors such as manufacturing, infrastructure, healthcare, IT, and MSMEs. The Budget also announced changes to transaction taxes in derivatives.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1770142473255\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"3-How-did-the-stock-market-respond-to-Budget-2026\"><\/span><strong>3. How did the stock market respond to Budget 2026?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The stock market saw sharp intraday swings on Budget Day. Some sectors reacted positively to spending and policy clarity, while others faced selling pressure due to higher trading costs and valuation concerns. The response varied across sectors and stocks.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1770142494863\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"4-What-caused-volatility-during-the-Budget-session\"><\/span><strong>4. What caused volatility during the Budget session?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Volatility increased as investors adjusted to announcements on Securities Transaction Tax, fiscal discipline, and sector-specific allocations. These factors affected trading costs and short-term expectations, leading to rapid price movements.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1770142496367\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"5-Which-sectors-appeared-more-stable-after-the-Budget\"><\/span><strong>5. Which sectors appeared more stable after the Budget?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Healthcare, pharmaceuticals, and parts of the IT sector showed relative stability, supported by policy continuity, healthcare-related announcements, and clarity on tax and compliance rules.<\/p>\n<p><strong>Disclaimer<\/strong>: Please note that this is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1770142530325\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"6-Which-sectors-came-under-pressure\"><\/span><strong>6. Which sectors came under pressure?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Stocks linked to derivatives activity, metals, select financials, and FMCG saw more selling pressure during the session, influenced by higher transaction costs and broader market uncertainty.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Finance Minister Nirmala Sitharaman presented her ninth consecutive Union Budget in Parliament on 1st February 2026 for FY 2026-27. As with every Budget Day, the announcements quickly shaped stock market behaviour. Despite being presented on a Sunday through a special trading session, the Budget triggered sharp moves across equity markets. The Nifty 50 ended the<\/p>\n","protected":false},"author":173,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[1],"tags":[],"acf":[],"modified_by":"Durga Mishra","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/17767"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/173"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=17767"}],"version-history":[{"count":6,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/17767\/revisions"}],"predecessor-version":[{"id":17777,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/17767\/revisions\/17777"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=17767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=17767"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=17767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}