Shares of Rail Vikas Nigam Ltd. (RVNL) fell over 6% on Monday, February 3, leading declines among state-run railway companies. The stock was trading at ₹404.00, down from its previous close of ₹433.55. Other railway-related companies, including Indian Railway Finance Corporation (IRFC), IRCON International, and RailTel Corporation, also witnessed declines of up to 5% amid selling pressure following the Union Budget announcement.
Railway Sector Pressure Post Budget
- RVNL: Down 6%
- IRFC: Down 4%
- IRCON International: Down 4%
- RailTel Corporation: Down 3%
The Union Budget presented on February 1 allocated ₹2.55 lakh crore to the railway sector for FY26, unchanged from FY25. This static allocation, coupled with broader negative market sentiment, has contributed to the downturn in railway stocks.
Global Factors Amplify Pressure
Investor sentiment was further dampened by fears of a global tariff war after the U.S. imposed tariffs on Canada, China, and Mexico on Saturday. The resulting global equity selloff added to the pressure on Indian markets, impacting sectors sensitive to economic policies, such as railways.
