After a long slump, India’s railway stocks have jumped more than 15% in just five trading days, adding about ₹66,500 crore in market value.
What sparked the rally?
The surge comes as investors gear up for the upcoming Union Budget and react to a few positive signals from Indian Railways.
Key drivers
- Fare increase: From Dec 26, passenger fares rose by 1‑2 paise per kilometre, expected to add roughly ₹600 crore in revenue.
- Budget expectations: Traders expect the next budget to allocate around ₹1.3 trillion to rail safety and infrastructure.
- New orders: Companies like RVNL have won fresh projects, boosting their order books.
Top gaining stocks
- Jupiter Wagons – up about 37%
- Rail Vikas Nigam Ltd (RVNL) – up around 27%
- Indian Railway Finance Corp (IRFC) – up more than 20%
- Ircon, Titagarh Rail Systems, RailTel, Texmaco Rail, RITES, BEML – all posted double‑digit gains.
Analyst views
Analysts say the rally is more about sentiment than fundamentals. They note that many railway stocks fell 40‑60% from their highs and remain below their peak valuations.
One researcher warned that the market may need clear evidence of better margins and faster project completion before returning to earlier levels.
What investors should consider
While the bounce shows renewed interest, the sector still faces challenges such as ongoing passenger losses and the need for sustained government spending. Experts suggest treating the current rally as a chance to lock in profits rather than chasing further gains.
Bottom line
Railway stocks are back in the spotlight, but the recovery is tentative. Investors should watch budget announcements and actual project progress before making big bets.
Remember, this is perspective, not a prediction. Do your own research before investing.