Companies linked to Railway infrastructure zoom amid expectation of high budget allocation
Upstox
1 min read • Updated: January 20, 2024, 11:37 AM
Summary
Shares of Ircon International, Rail Vikas Nigam, and IRCTC are up in the range of 10% to 30% with high volumes.
- Railway-related companies are on the roll for a second straight day, with most stocks witnessing substantial rally amid expectation of higher budgetary allocation for Indian Railways in the upcoming interim budget to be announced on 1 February.
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Shares of Ircon International, Rail Vikas Nigam, and IRCTC are up in the range of 10% to 30% with high volumes. Meanwhile, Indian Railway Finance Corp (IRFC), Titagarh Rail Systems, and Jupiter Wagons are up 7 to 9%.
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As per experts, the railways' capital expenditure (capex) is likely to increase by about 25% to more than ₹3 lakh crore compared to the previous budget.
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The increased allocation will go towards rolling out more Vande Bharat trains in different formats, including one with sleeper coaches, improving safety features and implementing priority infrastructure projects like the Ahmedabad-Mumbai bullet train project.