India 2026: The Budget, The AI Boom, and Where to Invest Now

As we cross the mid-point of February 2026, the Indian economic landscape is witnessing a historic convergence. With the India AI Impact Summit currently underway at Bharat Mandapam and the dust settling on Budget 2026, the “Bull” case for India is shifting from speculative trading to high-conviction “Backbone Investing.”

1. The Fiscal Roadmap: Budget 2026 and the “STT Shock”

The Union Budget 2026-27 has signaled a “tough love” approach for Dalal Street. While the fiscal deficit target of 4.3% of GDP shows discipline, the changes in transaction costs have redefined the playing field for retail investors.

• The F&O Pivot: The hike in Securities Transaction Tax (STT)—from 0.02% to 0.05% for Futures and up to 0.15% for Options—is a clear nudge from the government to move away from high-frequency gambling toward long-term equity delivery.
• Infrastructure Supercycle: Public Capex has been dialed up to ₹12.2 Lakh Crore. This is a direct tailwind for PSU giants and the logistics sector.
• The Consumption Catalyst: The impending 8th Pay Commission is the “X-factor.” With higher disposable income for over 3 crore government employees, the consumer discretionary sector is looking at a massive liquidity injection.

2. The AI Gold Rush: India’s “Full-Stack” Moment

2026 is officially the year India stopped being an AI consumer and became an AI producer. At the India AI Impact Summit 2026, Union Minister Ashwini Vaishnaw announced the deployment of 50,000 additional GPUs under the ₹10,300 crore IndiaAI Mission.

The Winners of the Compute Era:

• Netweb Technologies: A standout performer with 141% YoY revenue growth in Q3 FY26. Notably, 64% of their revenue now comes directly from AI systems.
• The IT Pivot: Companies like Infosys (via Topaz) are transitioning from traditional services to AI-first integrators, eyeing a $400 billion global opportunity.

Official IndiaAI Mission Portal for GPU subsidy details.

3. Sector Spotlight: Logistics and Consumer Resilience

While tech grabs headlines, the “physical” economy is showing record strength.

• **Delhivery’s Profitable Turn: ** Following the successful integration of Ecom Express, Delhivery has reported a PAT of ₹110 crore for Q3 FY26. Their use of “agentic AI” and mobile robotics has slashed operational costs, proving that logistics is now a high-tech play.
• The Roti-Kapda to “Experience” Shift: As noted by Nilesh Shah (MD, Kotak Mahindra AMC), incremental spending is moving from basic necessities to discretionary items like e-commerce, healthcare, and premium financial services.

4. Expert Stock Picks for February 2026

In a market that is rewarding quality over momentum, these stocks are showing strong technical and fundamental breakouts:

FAQ: Navigating the 2026 Market

Nilesh Shah’s February Market Outlook.

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Amit Sharma

As the Lead Analyst at Invest With Bull, Amit Sharma bridges the gap between complex banking regulations and your wallet. With a core focus on Credit Card Arbitrage and BDA Real Estate, Amit provides the data-backed analysis that salaried professionals need to maximize returns and minimize interest. He is dedicated to building financial literacy through unbiased, actionable research.

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