Netweb Technologies, Anant Raj, E2E Network surge up to 13% as Budget 2026 announces tax incentive for data center

Shares of data center and AI companies rallied in the special session on Sunday after Finance Minister Nirmala Sitharaman announced a long-term tax initiative aimed at encouraging foreign companies to expand cloud services in India in the Union Budget 2026.

The tax holiday will be provided to any foreign company that provides cloud services to customers globally by using data center services in India. On the other hand, for Indian entities, these companies are required to provide services through a domestic reseller entity.

Stocks of leading IT companies like Coforge, TCS, Infosys, Persistent Systems and Wipro gained between 1.2% and 2.5% after the Budget announcement.

Persistent Systems gained up to 2.5% to hit a high of ₹6,189.5 apiece on the NSE. Coforge shares advanced 1.71% from the previous close to touch an intraday high of ₹1,682.4 apiece, while TCS climbed 2.19% to an intraday high of ₹3,193. Infosys rose 1.27% to an intraday high of ₹3,193 and Wipro gained 2.04%.

Companies engaged in providing energy, hardware and infrastructure solutions for data center also gained following the Budget 2026 announcement.

Anant Raj Industries rose nearly 10% to hit an intraday high of ₹553.5, as investors welcomed the government’s push to position India as a global data center hub. E2E Networks jumped nearly 10% to an intraday high of ₹2,334.6 apiece on the NSE, while Netweb Technologies rallied up to 6% to hit an intraday high of ₹3,333.3.

Budget 2026 announcement is aimed at positioning India as a global hub for digital infrastructure, while creating incentives for cloud companies to expand operations within the country through data center.

The government, in Budget 2026, highlighted the role of such investments in scaling up India’s digital services landscape.

Alongside the tax holiday, the government also proposed a safe harbour of 15% on cost in cases where the co-providing of data services from India is done through a related entity.