Railway-related shares have rallied sharply this week, drawing attention from retail investors as the Union Budget approaches.
Analysts say the bounce is mostly sentiment‑driven. A promoter conversion of a preferential issue in Jupiter Wagons sparked buying, which then spread to other companies tied to railway projects.
IRCTC also saw buying after Indian Railways announced a fare‑structure rationalisation effective Dec 26, while RailTel got a boost from reports of talks with Elon Musk’s Starlink for a possible partnership.
Investors are eyeing the Feb 1 Union Budget for clues on railway spending. Forecasts suggest a 10‑12% rise in railway allocations, possibly reaching around ₹2.76 trillion, which could fund new Vande Bharat sleeper trains and upgraded safety systems.
From a fundamentals view, wagon manufacturers like Jupiter Wagons are seen as having strong, ongoing demand. Some analysts recommend taking profits on the current pre‑budget rally while keeping a smaller position in companies with solid growth prospects.
On the technical side, IRCTC is trading above its 20‑day simple moving average, with support near 675. If it holds, the stock could test 700‑710. Titagarh Rail, after a 6% gain, may move toward 870‑880 if it stays above the 800 level.
History shows that pre‑budget rallies can fade quickly. Market participants warn that after the budget, investors will look for real evidence of higher margins and faster project completion before committing more capital.
Railway stocks are back in focus, but whether the upside continues will depend on the actual budget allocations and how quickly projects are executed.
Remember, this is perspective, not prediction. Do your own research and consider your risk tolerance before making any investment decisions.
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