Railway wagon stocks reacted indifferently to the budget as most of them lost 1-2 percent on February 1 despite Finance Minister Nirmala Sitaraman announcing plan to convert 40,000 rail coaches to Vande Bharat standards. Experts believe the market has priced in most of the positives in the railway stocks, and hence, the indifference.
Titagarh Rail was trading down 1 percent, Texmaco Rail 1.68 percent and Jupiter Wagons was down 2.34 percent.
Sandeep Tandon, CEO of Quant Mutual Fund said that although some of the railway stocks look good, most of them have seen runaway moves and even in the last one-and-a-half years, they have given returns in multiple times. “We don't expect these stocks to react more as most of the new things are already priced in,” Tandon said.
The railway stocks had been in a tear in the run-up to the interim budget. In the last one month, most of them had rallied 20 percent.
The railway stocks were among the biggest beneficiaries in the previous Union Budget. In the 2023-23, the rail ministry was allocated a record Rs 2.4 lakh crore. This included a capital expenditure of Rs 1.85 lakh crore which was used in the Vande Bharat trains, station redevelopment, and new tracks which gave a positive impact to the rail stocks.
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