Anant Raj, Netweb Tech, other data centre stocks rally up to 7%. What’s triggering the surge?

Shares of Anant Raj, Netweb Technologies, Techno Electric and Engineering, and other Indian data centre stocks extended gains for a second straight session and rallied up to 7% on February 2 after the Union Budget unveiled a long tax holiday aimed at positioning India as a global cloud and data centre hub.

Finance Minister Nirmala Sitharaman proposed a tax holiday running until 2047 for foreign companies providing global cloud services from data centres located in India, provided services to Indian customers are routed through an Indian reseller. The move is designed to attract hyperscalers and global cloud players to serve international markets from India, strengthening the country’s role in global digital infrastructure.

On the real estate front, Anant Raj climbed up to 7.1% in today’s session to a high of Rs 570 on the BSE. The company has been aggressively developing data centre parks in the Delhi-NCR region, with multiple facilities already operational. Emkay Global has flagged Anant Raj as a key beneficiary of India’s data centre build-out, with a target price of Rs 800, implying meaningful upside from current levels.

Techno Electric Engineering gained up to 3% as investors bet on a pickup in data centre construction activity and associated power infrastructure demand. The company has been expanding its presence in data centre projects and smart metering, both of which enjoy strong policy tailwinds.

Netweb Technologies rose 5% to their day’s high of Rs 3,482 on the BSE. The company supplies high-performance computing servers and supercomputing solutions that are closely tied to large data centre and cloud deployments. While demand prospects remain robust with hyperscalers expected to scale up capacity in India, analysts caution that a part of the optimism may already be priced in.

Cummins India added around 1%, supported by expectations of sustained growth in power demand from data centres, hospitals and real estate. Nomura has highlighted gensets and power solutions as a steady beneficiary of rising digital infrastructure investments.
Even Adani Enterprises rose 2% as the group is building a pan-India data centre network through its AdaniConneX joint venture with EdgeConneX.Orient Technologies fell prey to profit booking and slipped over a percent. The company operates in IT infrastructure and services, which could see higher order inflows as India’s cloud and data centre ecosystem deepens.

By offering policy certainty until 2047 and lowering the effective tax burden, the government has sent a clear signal that data centres and cloud infrastructure are strategic priorities for India’s digital growth story.

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