Railway Stocks Today: Railway sector is once again in the headlines in the stock market. After facing sluggishness for a long time, railway stocks are seeing a strong comeback. Many rail-linked stocks rose sharply, ranging from 4% to 12% in Tuesday's trade. Strong buying was seen in stocks like IRFC, IRCTC, Jupiter Wagons, Rail Vikas Nigam (RVNL), Railtel, Texmaco Rail, Titagarh Rail Systems, IRCON and RITES. This rally has come at a time when Union Budget 2026 is just a few weeks away and expectations regarding railway capex are rising. Let us know the reason behind the rise in rail stocks and what is going to happen in future...
There are many triggers working behind this boom in the railway sector, factors like news of new and big orders, international contracts, technological achievements, corporate developments and expectation of increase in capex before Budget 2026 have together brought railway stocks back on the radar of investors.
Jupiter Wagons was the biggest gainer in Tuesday's trade. The stock rose by more than 12%. Investor confidence got further strengthened after the news of conversion of 28.72 lakh convertible warrants into equity shares by the company's European unit TATRAVAGONKA.
Shares of RailTel Corporation of India saw a rise of more than 8%. This PSU company related to railway networking and digital infrastructure continues to be the choice of investors.
Shares of Rail Vikas Nigam Limited (RVNL) rose more than 4%. The company has received letter of award of ₹165 crore from North Eastern Railway. The project involves construction of bridge sub-structure over river Gandak and is based on 25-tonne axle load standard. With this order the already strong order book of RVNL has been further strengthened.
Shares of RITES Limited rose by more than 6%. The company has received an international contract worth $35.2 million from South Africa's Ndalama Capital, which includes the supply and commissioning of diesel electric locomotives. This order strengthens the export capability and revenue visibility of RITES.
Shares of Titagarh Rail System rose nearly 4% on Tuesday. The company has rolled out India's first 'Made in India' driverless trainset for Gujarat Metro. These will be equipped with modern steel, steel metro trains, driverless operation, advanced safety systems and inclusive passenger design. This reflects India's high-end rail manufacturing capability.
Shares of Texmaco Rail & Engineering rose by about 6% today. This stock directly benefited from the increasing interest of investors in the railway infrastructure theme.
There was a slight rise in IRCTC shares. NSE has announced that IRCTC's F&O contracts will be phased out gradually and new expiry contracts will not come after the existing series. Although this will impact derivatives traders, IRCTC still remains a strong and tracked stock in the cash market.
On Monday also, a rise of up to 13% was seen in railway shares. The market expects railway capex to increase by 10-12% to reach ₹2.76 lakh crore in this Union Budget 2026. The focus areas could be Vande Bharat sleeper trains, network expansion, armor safety systems and track and signaling upgrades.
Disclaimer: This article has been prepared for information and general information purposes only. The information given herein, share prices, targets and market related assessments are not investment advice. Investing in the stock market is subject to risk. Before investing in any share, definitely consult your financial advisor or market expert.
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