Larsen & Toubro Share Price Rises Nearly 3% in Stock Market Today: What Lifted the Capital Goods Major?

Market Performance: Larsen & Toubro Share Price Rebounds Sharply

Larsen & Toubro share price moved firmly higher in the stock market today, drawing investor attention early in Monday’s session.

On the BSE, L&T shares surged close to 3%, trading at ₹3,930, effectively wiping out the losses recorded in the previous session. The move marked a sharp turnaround after the stock had slipped during Budget Day trading.

To put the move in perspective:

• Previous close (Friday): ₹3,933.45
• Sunday (Budget Day) low: ₹3,813
• Monday intraday price: ₹3,930

By 09:36 AM, Larsen & Toubro share price was up 2.8% at ₹3,919.70, clearly outperforming the broader market, while the BSE Sensex was higher by just 0.39% during the same period.

This rebound also comes in the context of the stock’s recent strength. L&T had touched an all-time high of ₹4,194.70 on January 5, 2026, underlining its strong positioning within the capital goods space.

Main News: Budget-Led Capex Focus Boosts Capital Goods Stocks

The sharp recovery in Larsen & Toubro share price today aligns with the market’s reassessment of the Union Budget’s capital expenditure thrust.

The Budget reaffirmed a capex-led growth strategy, which remains a key driver for infrastructure and capital goods companies. For FY27 (Budget Estimates):

• Capital expenditure is pegged at ₹12.21 trillion
• This marks an 11.5% year-on-year increase
• Capex-to-GDP ratio remains steady at 3.1%

These numbers reinforced confidence across capital-intensive sectors, helping stocks like Larsen & Toubro recover swiftly after initial volatility.

Short-term Budget Day reactions often reflect uncertainty. Monday’s price action, however, suggests a clearer reading of policy continuity and long-term infrastructure spending.

Policy Measures That Influenced Market Sentiment

Several Budget announcements stood out for capital goods and infrastructure-linked companies, shaping investor sentiment in the stock market today.

Key policy highlights included:

• Extension of customs duty exemptions for:
  • Nuclear power projects (extended till 2030–35)
  • Critical mineral processing
  • Battery Energy Storage Systems (BESS)
  • Solar glass inputs
• Proposal of a new Construction & Infrastructure Equipment (CIE) scheme
• Announcement of seven high-speed rail corridors across major economic routes

These measures collectively signaled continued policy emphasis on infrastructure creation, energy transition, and transport development—areas where execution-heavy companies play a central role.

Company Context: Why Larsen & Toubro Stays in Focus?

Larsen & Toubro remains one of the most closely tracked stocks whenever capital expenditure takes center stage.

The company operates across:

• Engineering and construction
• Large-scale infrastructure projects
• Power, heavy engineering, and transportation-linked execution

Because of this positioning, any reaffirmation of government-led capital investment tends to reflect quickly in Larsen & Toubro share price movements.

Monday’s rebound shows how swiftly market sentiment can shift once clarity emerges, especially after event-driven volatility like Budget Day trading.

Stock Market Today: A Broader View of the Move

While headline indices remained largely steady, the outperformance of Larsen & Toubro in the stock market today highlighted selective buying in capital goods counters.

The contrast was clear:

• L&T gain: ~2.8% to 3%
• Sensex move: ~0.39%

Such divergence often indicates sector-specific optimism rather than a broad market rally.

Summary: What Drove Larsen & Toubro Share Price Today?

Larsen & Toubro share price recovered sharply on Monday, reversing Budget Day losses as markets digested the government’s continued emphasis on capital expenditure.

Key takeaways:

• Stock rose nearly 3% to ₹3,930 in intraday trade
• Recovered from ₹3,813 levels seen on Budget Day
• Supported by ₹12.21 trillion FY27 capex allocation
• Policy continuity across infrastructure, energy, and transport remained intact
• L&T continues to react closely to long-term capex signals in the stock market today

The move underscores how quickly sentiment can shift when uncertainty clears, especially for capital goods leaders positioned at the heart of India’s infrastructure push.

Source: Business Standard