Shares of data center and AI-related companies rose for the second straight session on Monday, 2 February 2026, after Finance Minister Nirmala Sitharaman announced a long-term tax break for global cloud service providers in the Union Budget 2026. The incentive attempts to encourage global cloud companies to establish and operate in India. 

E2E Networks, a cloud infrastructure provider, had a 10% increase in stock price to Rs 2,526 on the NSE. On Sunday, the stock rose 8.2%. Anant Raj Industries shares surged 7.5% to an intraday high of Rs 570.55, following a 5% increase during Sunday’s special trading session.

Among others, Netweb Technologies and Techno Electric increased by 5.3% and 2.9%, respectively. 

The idea includes a tax break until 2047 for global corporations that provide global cloud services through data centres in India, provided that services for Indian consumers are channeled through a domestic reseller. The program aims to boost India’s position as a major hub in the global digital infrastructure network.

This might boost project returns, increase cash flow creation, and reinforce India’s position in global cloud infrastructure.

Extending a tax break till 2047 to multinational enterprises providing global cloud services from India would greatly boost project returns and encourage higher cash flow production.

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