India's capex budget unexciting and largely in-line with view, CLSA says

ABB India

02/02/2026 04:53

** Nothing much exciting about India's budget, says CLSA

** Says, adjusted capex growth pegged at 10.7% in FY27 vs 6.2% in FY26 largely in-line with market consensus

** Brokerage expects defence growth to slow on a high base, and railways and roads to pick up on a low base

** Notes that FY26 revised capex for defence at 2.2 trillion rupees vs budget estimate of 1.8 trillion rupees; adds FY27 defence capex to grow by a muted 5.2% on this revised estimate

** Meanwhile, capex for railways and roads declined by 1.5% and 11.3% in FY26; CLSA now expects these two areas to grow 10.5% and 9.1% in FY27

** On Monday, defence stocks .NIFTYINDDEFENCE were down 0.3% and infra stocks .NIFTYINFR were trading 0.6% higher

 (Reporting by Kashish Tandon in Bengaluru)

 ((Kashish.tandon@thomsonreuters.com))