Investors always have to keep a close eye on the annual financial statement released by the Union Finance Minister because this statement not only paves the way for several opportunities for industries but also throws light on taxes.
Recently, India’s Finance Minister Nirmala Sitharaman presented the budget 2026, intending to focus more on infrastructure and economic stability, but the investors were heavily shocked because the BSE Sensex fell to 1800 points, and the same case was with NSE Nifty50, which reached 25,000 points. The prime reasons were the hike in STT (Securities Transaction Tax) and more.
Focus On The Key Industries That Will Get The Most From Budget 2026
The market fluctuation that took place on the day of the budget 2026 was for the short term, because the budget planner has focused more on long-term investment. So, as an investor, you must know the insights of the new budget that can help you stand tall in the market, and for this, you must focus on the major sectors to get a long-term profit.
Semiconductor
The NDA-alliance government has planned to move ahead with the ongoing India Semiconductor Mission (ISM) that was launched in 2021. In ISM 2.0, the government has proposed to allot 1000 crores to the Ministry of Information and Technology to make India a global leader in manufacturing electronic gadgets. Additionally, the government has focused on the research and training centres to develop a skilled workforce. So, as an investor, you can think about the semiconductor companies to invest in.
Biopharma
The biopharma sector is in a boom, and after the presentation of the new budget, several investment opportunities have been opened for investors. In this budget, the government has launched the Biopharma Shakti project, proposing to spend 10,000 crores to boost the biopharma sector.
Moreover, to give thrust to this project, the government has planned to launch three new National Institutes of Pharmaceutical Education and Research. So, if you closely analyze the market trends of biopharma companies based on the records, you may get the directions to choose the right company to invest in.
Rare Earth Mineral & Mining
Rare earth minerals are used in manufacturing EV utilities, electronic devices, defense components, and medical equipment.
So, such minerals are in high demand, and the government wants to reduce its dependency on China by building corridors in Southern India, and in this initiative, the ruling government has planned to invest a hefty amount of money in the exploration of rare minerals.
Being an investor, you must prepare a systematic investment plan considering the stats of companies involved in the exploration of rare minerals, as this act will help you gain profit in the long term.
Infrastructure
In the new cash flow budget, the government has emphasized the infrastructure project and proposed to invest 12.2 lakh crores.
Moreover, in the budget, one of the key highlights was the container manufacturing scheme, where the government has allotted 10,000 crores for manufacturing containers.
So, you can look for such companies involved in the infrastructure sector, as this will help you to stay in the race for a longer time.
Share Buyback
If you like technology and spend your money on purchasing shares of IT companies, then this new budget has brought good news for you.
The government has introduced share buyback taxation, where you will have to pay capital gain tax, i.e., 12.5%, rather than dividend tax.
So, it means you will have to pay less to the government, and also, this provision enables the IT companies to introduce more buybacks.
Maintain Distance From Derivatives For A While
The investors who invested in the derivatives, like futures & options, were in a deep shock because the government increased the STT tax from 0.02% to 0.05%.
Securities Transaction Tax is a tax that every investor pays while buying or selling securities from an exchange. So, the increment on STT means you will have to pay more to the government, and if you are a day trader, then you will be most affected.
So, you must look for other industries that may give you a good profit, rather than depending on derivatives.
Conclusion
The budget 2026 has brought good news for long-term investors, as you can invest in the key sectors where the government has proposed to allot the money, including infrastructure, defense, mining, textile, biopharma, and more.
However, if you believe in short-term trade, then you should not invest your money in the futures & options for a while. So, it is better to look for alternatives, like companies associated with rare earth minerals, semiconductor companies, and more.
Moreover, for an effective investment solution, you should always look for the best investing platforms, as they will provide you with the stats and market trends of the companies, which will help you analyze them efficiently.
FAQs
The new budget 2026 is brought with a vision to enhance the growth of the domestic manufacturing sector to make India a self-reliant country. So, as an investor, you can invest in the domestic companies that indulge in the extraction of rare minerals and perform operations in semiconductors.
Yes, the Securities Transaction Tax has changed, so you will have to pay extra tax on the derivatives, like futures and options. The tax rate that has been increased for futures is 0.05%, and for options, it is 0.15%.
After going through the highlights of the budget 2026, you can step up and invest in some key sectors, including chip manufacturing companies, infrastructure, real estate, and biopharma.
