Amid the reports of hike in the budgetary allocation, the railway stocks surged on Thursday. This has increased investor sentiment, reversing the downward trend seen in recent months
Reports have said that the Union Budget 2025-26, scheduled for February 1, could see a significant 15-18 per cent hike in budgetary allocation for the Ministry of Railways.
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Shares of Ircon International spiked 11.45 per cent to Rs 212.5 on the NSE, while Rail Vikas Nigam Ltd (RVNL) and Railtel Corporation of India posted gains of 11.66 per cent and 8.77 per cent, respectively.
Indian Railway Finance Corporation (IRFC) witnessed strong buying interest, climbing 5.95 per cent to an intraday high of Rs 145.75.
Titagarh Rail Systems Ltd advancing 6 per cent to Rs 1,072.55 and Texmaco Rail & Engineering jumping nearly 9 per cent.
Among other private rail stocks, Jupiter Wagons shares rallied by 6 per cent, while Oriental Rail, and Ramkrishna Forgings were trading 2-3 per cent higher each.
Reports have suggested that the upcoming budget is expected to increase capital expenditure for Indian Railways by 15-20 per cent, potentially raising the total allocation to over Rs 3 lakh crore, up from Rs 2.65 lakh crore in the current fiscal year.
This will be a significant boost in budget allocation is seen as crucial for accelerating modernisation efforts, with a focus on upgrading railway stations, launching modern trains, and addressing track network congestion.
During the last budget presentation in July, shares of railway stocks plunged by up to 8 per cent.
