E2E Networks, Anant Raj, other data centre stocks jump up to 10%, extend gains after Union Budget

E2E Networks, Anant Raj, other data centre stocks jump up to 10%, extend gains after Union Budget

• Shares of data centre and AI firms surged after Budget 2026 announcements
• FM Sitharaman announced tax holiday till 2047 for foreign cloud service firms
• Tax holiday aims to boost India's role in global digital infrastructure

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The shares of data centre and AI companies jumped in trade on February 2, extending gains for the second consecutive session after Finance Minister Nirmala Sitharaman presented Union Budget 2026.

E2E Networks shares surged nearly 10 percent to trade at Rs 2,526 apiece, while Anant Raj shares jumped more than 7 percent to Rs 570.55 apiece. Netweb Technologies India shares gained 5 percent in the early trading hours of Monday, before paring all gains and slipping into the deep red.

What FM Sitharaman said:

While presenting the Budget in the Parliament on February 1, the finance minister announced a landmark tax holiday until 2047 for foreign companies providing cloud services using data centre infrastructure located in India.

However, to qualify for the incentive, these companies will have to offer services to Indian customers through Indian resellers. This will ensure domestic participation in the cloud services ecosystem.

“I propose to provide tax holiday till 2047 to any foreign company that provides cloud services to customers globally by using data centre services,” Sitharaman said in the Lok Sabha yesterday.

Here's what analysts say:

The proposal to provide tax holidays until 2047 for foreign companies providing cloud services globally using data centre infrastructure in India demonstrates long-term strategic thinking, said HDFC Securities. “By enabling critical infrastructure and boosting investment in data centres, this measure positions India favourably in the global digital economy for decades to come,” it added.

“The Budget’s focus on attracting global cloud and data centre investment is a strong signal of India’s intent to become a serious digital infrastructure hub. Tax incentives for companies serving global customers from India, along with safe-harbour provisions, create the right conditions for building scalable, enterprise-grade data platforms,” said Varun Babbar, VP and India MD, Qlik.

“The proposed tax holiday until 2047 for global cloud service providers operating data centres in India sends a strong signal to long-term investors and hyperscalers. It encourages sustained capital commitment, accelerates large-scale infrastructure build-out, and strengthens India’s position in the global cloud, AI, and digital services value chain,” said Akshay Chhabra, CMD of 1Point1 Solutions.

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