1 Feb 2023 , 02:18 PM
Rail stocks give mixed cues as FM hikes allocation to Rs 2.4 lakh crore in Budget 2023
Railway stocks experienced heightened demand following the presentation of the Budget 2023-24 by Finance Minister Nirmala Sitharaman, as she announced an increase in capital expenditure allocation for the railway sector to Rs2.4 lakh crore rupees.
The move will benefit all EPC-based companies, as well as product companies in waggons, signalling, communication, and bearings, among other things.
Following the announcement, some of the stocks rallied. Stocks that rallied include KEC International (+2.20%), with over 2% gain. Siemens (+0.98%) also joined the rally with about 1% gain.
However, Titagarh Wagons (-4.99%) plunged about 5%. RVNL’s (-3.55%) scrip dipped nearly 4% so far in today’s trade.
Railways is a key driver of the PM GatiShakti scheme as well as the National Logistics Policy.
The 2023-24 budget saw a substantial allocation to the railway sector, with the government allocating a capital outlay of Rs2.40 lakh crore, a nine-fold increase from the 2013-14 budget. This substantial allocation aligns with industry expectations and has resulted in a surge in stock prices for railway-related companies such as Titagarh, IRCTC, RVNL, and IRCON, according to Nisha Harchekar, the Head of Equity Research at Fintoo.
For feedback and suggestions, write to us at editorial@iifl.com
Related Tags
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Securities Support WhatsApp Number
+91 9892691696
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.