All eyes will be on the Union Budget 2026-27, and the stock of Indian companies will be facing volatility as soon as the markets open on Sunday, February 01. The key sectors in focus ahead of the Budget include defence, railway and infrastructure on the back of a possible hike in allocation and greater capex spend.
The GIFT Nifty indicates that the domestic indices will open on a muted note. Here are updates on all the stocks that are expected to be in focus ahead of the Budget.
Stocks to watch on Budget, February 01, 2026
Defence sector stocks
The defence sector stocks are decidedly in focus on the expectation that the allocation in the defence sector may go up by 10-15%. According to a Jefferies report, among the defence sector stocks, investors are remain comfortable with BEL on the back of its sharp execution track record and earnings visibility. Jefferies is also backing Hindustan Aeronautics (HAL), which it believes “is relatively under-owned.” According to Jefferies, the strong “order pipeline, recurring service income and debt-free balance sheet” are not fully reflected in investor positioning.
Infrastructure, cement stocks
Given the capex push, infrastructure is another key sector in focus. Generally, there are expectations that allocation to larger infrastructure projects like Jal Jeevan Mission, High-Speed Rail, Smart Cities, and Inland Waterways Development is expected, supporting the broader objectives of the National Infrastructure Pipeline (NIP).
Renewable Sector
The renewable sector is another key sector in focus. To achieve the 500 GW of renewable energy capacity by 2030, a boost is expected for the renewable sector in the forthcoming budget. According to key analysts, announcements could be made with regard to
-PLI scheme for the solar energy value chain
-Increase PM Suryaghar Yojana allocation
-Expanding/modernising transmission grid infrastructure a
Axis Securities highlighted that increasing allocation for smart metering, infrastructure and announcements about energy storage solutions (ESS) like pumped hydro storage projects and battery energy storage systems (BESS) are otherkey factors providing a filip for the sector.
Railway sector stocks
The railway sector stocks are also in focus ahead of the Budget. In the last Budget, the Railway capex was maintained at Rs 2.52 lakh crore, and so far (till December, 2025), nearly 80% has been utilised. This, along with the Government’s announcement about new trains and bridges, has fuelled hopes for increased allocation for the railway sector.
Apart from the Budget-focused sectors, there are some other stocks in the news as well-
Adani Group
The United States SEC’s (Securities Exchange Commission’s) civil fraud lawsuit against billionaire Gautam Adani and his nephew Sagar Adani is reported to have moved forward. According to a report by Reuters, the breakthrough came in a Friday filing in a Brooklyn, New York, federal court. For 14 months, the SEC had been unable to ‘serve’ the defendants, a necessary legal step to start a trial, as the Union Law Ministry repeatedly blocked service attempts on technical grounds. By agreeing to have their U.S.-based counsel, including prominent Wall Street lawyer Robert Giuffra Jr., accept the summons, the Adanis have cleared the path for the regulator’s case to proceed.
Ola Electric
Ola Electric on Friday announced that it will lay off 5% of its workforce as part of a restructuring exercise, less than a year after it let go of over 1,000 employees and contract workers in a similar drive aimed at improving profitability. The latest round of restructuring is estimated to impact more than 500 employees and workers, although the company has not specified the number affected. “As part of this ongoing structural transformation, approximately 5% of the workforce will be impacted,” the company said.
Power Grid Corporation
Power Grid Corporation of India (Powergrid) reported an 8% year-on-year (YoY) rise in consolidated net profit to Rs 4,185 crore in the December 2025 quarter, driven by higher income. The company’s total income was Rs 12,599 crore, 7% higher compared to the year-ago period. Powergrid’s gross fixed assets (including gross lease receivables) on a consolidated basis stood at Rs 3,04,336 crore as on December 31, 2025, surpassing the Rs 3 trillion milestone for the first time.
NTPC
NTPC reported an 8% YoY rise in consolidated net profit to Rs 5,597 crore for the December quarter, supported by stable operating performance, even as revenue growth remained muted and standalone revenue declined. The state-owned power producer had posted a consolidated net profit of Rs 5,169 crore in the Q3FY25. Consolidated segment revenue during the quarter increased 1.5% YoY to Rs 46,304.77 crore, compared with Rs 45,597.95 crore a year earlier.
Ambuja Cements
Adani Group firm Ambuja Cements’ net profit attributable to the owners dipped 90.6% YoY to Rs 204 crore in the third quarter of FY26. Net profit was lifted by one-off gains in the form of government grants and write-backs to subsidiary ACC. Normalised PAT — without the impact of one-off gains — came in at Rs 378 crore compared with Rs 106 crore in the year-ago period. Profit attributable to the owners came in behind Bloomberg’s estimate of Rs 734 crore. The firm’s revenue from operations for the December quarter was Rs 10,181 crore, up 19.8% year-on-year and marginally ahead of the Bloomberg estimate of Rs 10,147 crore.
Meesho
Meesho reported a significantly wider loss in its first quarterly results post IPO, as the company increased investments in its logistics arms Valmo and overall user growth, which ate into its margins. Net loss for the third quarter of FY26 was Rs 490.7 crore, compared to a loss of Rs 37.4 crore in the year-ago quarter. The company said it rapidly expanded Valmo’s logistics network in the second and third quarters, in response to a market consolidation of third-party logistics providers (3PL) in Q1.
Reliance Communications
The Enforcement Directorate on Friday announced the arrest of former Reliance Communications (RCOM) president Punit Garg on money-laundering charges in the Rs 40,000 crore bank loan fraud against the Anil Ambani group of companies. According to reports from PTI and IANS, Garg was taken into custody on Thursday and has been sent to nine days of ED custody by a special PMLA (Prevention of Money Laundering) court in Delhi as of January 30, 2026. The investigation centres on the alleged “fraudulent diversion” of public money by RCom and other group entities under the leadership of Anil Ambani.
Bajaj Auto
Bajaj Auto reported a steady set of numbers in Q3FY26. Its standalone net profit rose 18.7% YoY to Rs 2,503 crore, compared with Bloomberg estimates of Rs 2,538 crore. The company said the reported profit included an exceptional cost of Rs 61.3 crore on account of the implementation of the new labour code. The company’s revenue from operations increased 18.8% YoY to Rs 15,220 crore, marginally below Bloomberg’s estimate of Rs 15,314 crore, but marked the first time the company crossed the Rs 15,000-crore quarterly revenue mark.
Allied Blenders & Distillers
Allied Blenders & Distillers (ABD), best-known for Officer’s Choice, is on track to deliver mid-double-digit value growth in terms of topline for FY26, backed by its premium portfolio of products, MD Alok Gupta said in an interaction with FE. The company hopes to continue this momentum into FY27 and beyond, Gupta said. The company’s premium or prestige & above (P&A) portfolio may touch the 50% mark in terms of sales volumes by the fourth quarter of FY26 from 48.5% now, driven by a preference for better products, he said.
AstraZeneca Pharma
AstraZeneca Pharma India said it has received permission from the Central Drugs Standard Control Organisation (CDSCO) for Imfinzi or durvalumab solution. The same is indicated for the treatment of adult patients with resectable gastric or gastroesophageal junction adenocarcinoma. AstraZeneca Pharma, in an exchange filing, said it has received the CDSCO’s permission to import for sales and distribution of the solution for infusion 120 mg/2.4 ml and 500mg/10 ml for an additional indication.