Railway sector stocks surged in early trade today amid expectations of a significant increase in Indian Railways’ capital expenditure (capex) for FY26. Reports from The Economic Times suggest the allocation could rise by 15-20%, crossing ₹3 lakh crore in the upcoming 2025-26 budget.
Railway Stocks Performance (as of 9:38 AM):
- RVNL: ₹402.60, up ₹30.70 (+8.25%)
- IRCON: ₹204.09, up ₹14.08 (+7.41%)
- JWL: ₹460.40, up ₹27.25 (+6.29%)
- RITES: ₹273.95, up ₹11.60 (+4.42%)
- Texmaco Rail: ₹187.54, up ₹7.74 (+4.30%)
- Titagarh: ₹1,050.55, up ₹38.75 (+3.83%)
- IRFC: ₹142.40, up ₹4.84 (+3.52%)
- BEML: ₹3,615.15, up ₹107.70 (+3.07%)
- IRCTC: ₹770.60, up ₹11.05 (+1.45%)
Possible Drivers for the Rally:
- Increased Capex Expectations:
- According to The Economic Times, the government is expected to boost railway capex by 15-20%, surpassing ₹3 lakh crore.
- Focus areas include station modernization, contemporary trains, and track decongestion.
- Support for Major Projects:
- Allocations are anticipated for bullet train projects and the launch of Vande Sleeper trains.
- Sector Sentiment:
- Investor optimism about infrastructure development is driving interest in railway stocks.
The anticipated announcements in the Union Budget 2025-26 have fueled strong buying momentum in the railway sector.
Disclaimer: This report is for informational purposes only and should not be considered as financial advice. Please consult your financial advisor before making any investment decisions.
