E2E Networks, Anant Raj surge up to 10% on tax holiday for cloud services

Data centre stock rally: Shares of data centre- and AI-linked companies extended gains for the second consecutive session on Monday, February 2, 2026, after Finance Minister Nirmala Sitharaman announced a long-term tax incentive for global cloud service providers in the Union Budget 2026. The incentive aims to attract global cloud companies to set up and serve from India.  

E2E Networks stock, a cloud infrastructure provider, touched 10 per cent upper circuit at ₹2,526 on the National Stock Exchange (NSE). On Sunday, the stock surged 8.2 per cent. Shares of Anant Raj Industries rose around 7.5 per cent to hit an intraday high of ₹570.55, following a 5 per cent jump during the special trading session on Sunday.  

 

Among others, Netweb Technologies and Techno Electric rose 5.3 per cent and 2.9 per cent, respectively. In comparison, the benchmark NSE Nifty50 was trading almost flat at 24,832.95 levels. 

The proposal introduces a tax holiday until 2047 for global firms offering global cloud services through data centres based in India, on the condition that services for Indian users are channelled via a domestic reseller. The initiative seeks to strengthen India’s role as a key hub in the global digital infrastructure network.  CATCH STOCK MARKET UPDATES TODAY LIVE

Analysts see positive impact on projects, cash flows

According to experts, this could improve project returns, support stronger cash flow generation, and strengthen India’s role in global cloud infrastructure. 

Analysts at Elara Capital said that offering a tax holiday until 2047 to foreign firms providing global cloud services from India would significantly improve project returns and support stronger cash flow generation. 

"With hyperscalers such as Alphabet and Meta Platforms committing $75 billion cumulatively to data-centre capacity in the next 4-5 years, India’s role in global cloud infrastructure is set to strengthen," the brokerage said in a note. 

Additionally, the announcement complements other Budget measures like ISM 2.0 (semiconductors) and ₹40,000 crore for electronics manufacturing, enabling end-to-end new-age value chains in AI/cloud.  ALSO READ | Latent View Analytics rallies 8%, trades higher for 3rd day; here's why 

The brokerage expects power equipment makers, cooling and electrical equipment suppliers, and data centre real estate players to benefit from the move. 

Pranav Haridasan, managing director and chief executive officer at Axis Secuities, said the move is particularly constructive, strengthening India's digital backbone and creating durable spillovers across power, telecom, real estate, and IT services.  

"This growth orientation, delivered alongside fiscal discipline, supports confidence in India’s broader macro framework," Haridasan said.  Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.