As Finance Minister Nirmala Sitharaman prepares to present her eighth Union Budget later today, railway stocks were on the rise, driven by expectations of significant announcements for the sector. The expansion of the railway network is expected to remain on par with last year’s levels, while the addition of rolling stock is expected to see a notable increase.
The Economic Survey, tabled yesterday, highlighted the introduction of 17 new pairs of Vande Bharat trains to the network, alongside the production of 228 coaches between April and October 2024. With the railways sector set to receive ample attention in the budget, railway stocks surged during Saturday’s special trade session.
Among the prominent players, Jupiter Wagons saw a substantial rise of nearly 7.3%, closing at ₹430.70, taking its market capitalisation to over ₹18,000 crore. Titagarh Rail Systems surged more than 6.5%, reaching ₹1,087, with its market valuation nearing ₹15,000 crore.
Texmaco Rail & Engineering climbed more than 3.6%, touching ₹203.70, and saw a market capitalisation surpassing ₹8,000 crore. K&R Rail Engineering also saw impressive growth, surging nearly 5% to ₹342.70, though its market valuation remained under ₹1,000 crore.
The Economic Survey revealed that 17 new pairs of Vande Bharat trains were added to the network, with 228 coaches produced between April and October 2024, underscoring the continued focus on improving rail infrastructure.
State-owned railway stocks also saw significant action, with several major companies recording strong gains. Rail Vikas Nigam (RVNL), IRCON International, Indian Railway Finance Corporation (IRFC), Indian Railway Catering and Tourism Corporation (IRCTC), RailTel Corporation of India, and RITES were among the best performers.
RVNL share price saw a notable rise of more than 5.25%, reaching ₹501.55, with its market capitalisation surpassing ₹1 lakh crore. This surge reflects investor confidence in the state-run segment of the railway sector.
RailTel share price surged over 4.7% to ₹425.75 in early trade, and IRCON International gained 3.56%, rising to ₹229.45. RITES Ltd posted similar gains, rising to ₹270.25, showing positive momentum for the broader state-owned railways pack.
IRFC share price rose more than 3.01% to ₹155.50, while IRCTC shares saw an increase of nearly 2%, reaching ₹838.35 during the day on February 1, 2025, reflecting investor optimism ahead of the budget.
With the railway sector expected to play a crucial role in the Union Budget, investors are closely watching the upcoming announcements that could further boost these stocks. The surge in railway stock prices highlights growing confidence in the sector’s future prospects.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 1, 2025, 10:47 AM IST
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