Railway stocks surge on infrastructure boost and budgetary allocations

8 Jul 2024 , 02:11 PM

Railway stocks, including RVNL, Ircon International, and IRFC, surged up to 15% on July 8 due to strong buying interest. The rally followed Railway Minister Ashwini Vaishnaw’s announcement of plans for 2,500 new general passenger coaches and 10,000 additional coaches.

Vaishnaw also announced the production of 50 new Amrit Bharat Trains, a high-speed and luxury train service, further boosting railway stocks. Expectations of a special focus on railway infrastructure in the Union Budget contributed to the stock rise.

The government is prioritizing the improvement of railway infrastructure, including track development, rail electrification, rolling stock manufacturing, and passenger freight services. The budgetary allocation for railway projects increased to ₹2.55 lakh crore for 2024-25, up from ₹2.40 lakh crore in 2023-24.

At the time of writing on July 8, 2024 at 1:58 pm, shares of Ircon International is currently trading at ₹324 which is a 5.31% gain than the previous close. Rail Vikas Nigam Limited (RVNL) is currently trading at ₹562 which is a 14.52% gain than the previous close. Indian Railway Finance Corporation (IRFC) shares are trading at ₹200 which is a 6.70% gain. RailTel shares are currently trading at ₹537 which is a 3.50% gain than the previous close. Texmaco Rail shares are trading at ₹285 which is a 4.32% gain than the previous close. RITES shares ₹776.30 which is a 1.78% gain. On the downside, Jupiter Wagons and Titagarh Rail stocks were trading with losses of up to 0.88% and 0.49% respectively.