Railway stocks jump in early trade amid optimism around budget announcement for railway sector

Railway stocks RVNL, Railtel Corporation, Jupiter Wagons, and Titagarh Rail Systems jumped over 5% during the early trade on Saturday. The railway stocks remain in the limelight, ahead of optimism regarding the major announcements in the budget speech for the railway sector.

At 10:15 am, shares of RVNL traded at ₹492 apiece, rising 3.3%, Jupiter Wagons at ₹425 apiece, up by 6.3%, Titagarg Rail Systems at ₹1,093 apiece, advancing 7.3%; and Railtel Corporation jumped 3.2% at ₹419 apiece.

In the previous budget, the government raised its funding for Indian Railways' capital expenditure by 5%, to ₹2.52 lakh crore, from ₹2.4 lakh crore allocated in the prior fiscal year. Indian Railways has utilised nearly 76% of the total budgetary outlay in the first nine-months of the current fiscal, a PIB release dated January 8 said, citing the latest expenditure report.

Among major capex plans, ₹34,602 crore were allocated to new lines, ₹29,312 crore for doubling of lanes, ₹50,903 crore for rolling stock, and ₹17,652 crore for track renewals. A sum of ₹10,000 crore was earmarked for Rashtriya Rail Sanraksha Kosh and ₹45,000 crore for the Railway Safety Fund.

In other news, RailTel Corporation of India has received the work order from Maharashtra State Power Generation Company (MSPGCL) for IT Network Restructuring for Nine Plants and Three Offices in MSPGCL to the latest technology, amounting to ₹104.15 crore (including tax). The said order is to be executed by January 30, 2030. The company also received another order from the Department of Education Samagra Shiksha for supply and service amounting to ₹15.98 crore