Railway Stocks Surge Ahead of Union Budget 2024

Image for: Railway Stocks Surge Ahead of Union Budget 2024

📷 Image Credits: The Economic Times

Railway stocks, including RVNL, IRFC, and others, have witnessed a significant surge in their prices ahead of the upcoming Union Budget 2024. The positive momentum in the railway sector comes amidst the announcement by Railway Minister Ashwini Vaishnav regarding plans for the production of new trains and additional coaches. The anticipation of a special allocation for railway infrastructure in the budget has further fueled the rally in these stocks.

The recent development has propelled shares of companies like RVNL, IRFC, Texmaco Rail, RailTel, and others to touch new all-time highs. Stock prices have surged with RVNL recording a gain of over 15%, hitting a high of Rs 567.50, and IRFC witnessing a jump of 9.5% to reach Rs 206. RailTel also soared by over 7% to touch Rs 559.40.

The Modi government’s focus on boosting infrastructure projects, particularly in the railway sector, has instilled confidence in investors. With the BJP-led NDA government returning for a third term, stakeholders are optimistic about the continuity of policies supporting infrastructure development. Analysts foresee a sustained growth trajectory for Indian railway companies, backed by an increased budgetary allocation of Rs 2.55 lakh crore for 2024-25.

The Union Budget 2024 is set to unveil the roadmap for the Modi 3.0 regime, with a particular emphasis on infrastructure enhancement, including railways, defense, and power sectors. Finance Minister Nirmala Sitharaman is scheduled to present the budget on July 23, setting the stage for potential market movements and industry developments. Overall, the outlook for railway stocks remains positive, with expectations of continued growth and expansion in the coming years.