Rail Vikas Nigam Ltd (RVNL), Railtel Corporation of India Ltd, Titagarh Rail Systems, other railway stocks were seen buzzing on January 30 amid expectations of enhanced capex for the national transporter in the upcoming Union Budget 2025.
At 1:15 pm on January 30, shares of Titagarh Rail Systems on BSE were trading 2.59% higher at Rs 972 apiece. Meanwhile, the shares of IRCON, Railtel, and IRFC were trading 4.54%, 4.03% and 3.42% higher, respectively.
The shares of RVNL, RITES, and IRCTC were trading 3.17%, 2.37% and 2.43% higher, respectively.
Earlier this month, Moneycontrol reported, citing sources, that government is likely to increase railway budget by 15-18% in FY26 to accelerate rollout of Vande Bharat, high-speed bullet trainsets.
The buying in the rail stocks also comes in the back of a steep correction that they faced from their all-time highs.
Union Budget 2025-26 is expected to hike the gross budgetary support (GBS) to the Ministry of Railways (Indian Railways) by 15-18 percent to around Rs 2.9 lakh crore-Rs 3 lakh crore, officials aware of the ongoing discussions told Moneycontrol.
The budget is set to be presented on February 1, 2025.
Faster capital expenditure spends seen in 2024-25 so far, coupled with the Indian Railways's plan to take increased deliveries of Vande Bharat trainsets and testing of high-speed rail trainsets in 2025 are the main triggers.
"As part of the production plan for Vande Bharat trains and rakes, Indian Railways expects to take delivery of nearly 90 trains in 2025, after around 62 trains were delivered in 2024. They will be launched on new routes," a senior official said.
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