**Market Brief: Data Centre Stocks Rally on 2047 Tax Holiday** **The Trigger** Indian data centre stocks witnessed a sharp rally following the Union Budget 2026 announcement. The Finance Minister proposed a **tax holiday until 2047** for foreign cloud companies operating from Indian data centres. This strategic move aims to position India as a global digital hub, incentivizing hyperscalers to establish long-term infrastructure in the country. **Key Beneficiaries & Price Action** The policy acted as a massive catalyst for mid-cap and niche infrastructure players: * **Anant Raj Limited:** Emerged as a top gainer, surging approximately **14%** to hit an intraday high of **₹576**. The market reacted positively to its aggressive expansion into data centre parks in North India. * **Techno Electric & Engineering:** The stock jumped over **8%**, trading above **₹1,030**. Investors are betting on increased orders for power infrastructure, a critical component for data centres. * **Netweb Technologies:** Gained **5-6%** to close near **₹3,305**. As a key supplier of high-performance computing servers, the company is expected to see a direct order book boost from incoming foreign investment. * **Orient Technologies:** Witnessed strong buying interest, climbing nearly **9%** initially before settling around **₹349**, driven by its IT infrastructure services portfolio. * **Cummins India:** Saw a modest rise of **1-2.5%**, reflecting steady demand for power backup solutions (gensets), which are essential for maintaining the mandated **99.99%** uptime in data centres. **The Outlier** **Adani Enterprises** traded against the sector trend, slipping marginally by **0.7%**. Despite its joint venture, AdaniConneX, the stock was weighed down by broader market pressure and specific tax hikes on derivatives (F&O) trading which impacted large-cap sentiment. **Policy Details** To qualify for the **21-year tax exemption**, foreign entities must serve Indian clients through a local reseller. Additionally, the government introduced a **15% safe harbour** on costs for related entities, reducing transfer pricing risks and improving ease of business for global tech giants.