Budget 2025: Energy stocks rally up to 9% on Nuclear Energy Mission plan

Budget 2025 highlights: Development of at least 100 gigawatt of nuclear energy by 2047 is essential for our energy transition effort, FM Sitharaman said on Saturday during Union Budget 2025 speech

Budget 2025 stock market impact: Energy-related stocks were trading mixed on today, February 1, 2025, as investors assessed the proposals made for the nuclear and green energy sectors during the Budget 2025.

 

On Saturday, Finance Minister Nirmala Sitharaman said that amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up for active partnership with the private sector under a Nuclear Energy Mission for 'Viksit Bharat 2047' dream.

 

"Development of at least 100 gigawatt (Gw) of nuclear energy by 2047 is essential for our energy transition efforts. For an active partnership with the private sector towards this goal, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up," Finance Minister Nirmala Sitharaman said in her Budget 2025 speech today.

 

Under the plan, Sitharaman proposed that a Nuclear Energy Mission for research & development of Small Modular Reactors (SMR) with an outlay of Rs 20,000 crore will be set up. At least 5 indigenously developed SMRs will be operationalized by 2033, she added. 

On the bourses, Walchandnagar Industries share price zoomed 8.9 per cent intraday, Hindustan Construction Co share price 5.8 per cent intraday, KSB share price 4.5 per cent intraday, Kirloskar Brothers share price 6.7 per cent, BHEL 3 per cent, and Larsen and Toubro share price 1.7 per cent.

 

"The Union Budget’s announcement of a Rs 20,000 crore allocation for a dedicated Nuclear Energy Mission in 2025-26, alongside the development of Bharat Small Reactors (BSRs) in 2024-25, is a game-changer for India’s energy landscape. Companies like Larsen & Toubro (L&T) and Bharat Heavy Electricals Limited (BHEL) are set to benefit from this initiative," said Oneeka Medh, research analyst at Samco Securities.  Also Read: Insurance stocks zoom after Budget 2025; Star Health, SBI Life gain upto 7%

 

This mission aims to operationalize five SMRs by 2033, significantly advancing India’s nuclear energy capabilities. It also aligns with the goal of generating 100GW of nuclear energy by 2047, reducing reliance on fossil fuels and helping meet the nation’s growing energy needs in a sustainable manner.

 

"The focus on indigenous development of SMRs and the broader push for nuclear energy will not only boost India’s energy security but also foster advancements in technology and innovation. This will create high-skilled job opportunities in research, engineering, and manufacturing, while positioning India as a global leader in clean energy," Medh said.

 

The share prices, however, came off highs by 1:10 PM, with stocks of BHEL down 5 per cent at the time of writing this report. By comparison, the BSE Sensex was down over 400 points, or 0.5 per cent, at 77,070.

 

On Saturday, Finance Minister Nirmala Sitharaman presented her eighth Union Budget in the Parliament, the highest number for any finance minister in independent India.

 

Stock Markets, too, were volatile in a special trading session, being held on a weekend, to account for all the proposals made by the government in the Budget 2025.

 

Stock market investors were waiting for Budget 2025 proposals as announcements made during the Union Budget 2026-26 speech and the Budget analysis will guide the impact on Sensex, Nifty in the near-term.