Railway Stocks Plummet Despite Budget Hike: IRFC, RVNL Down 5% After 2026 Announcement
Business
M
Moneycontrol•01-02-2026, 15:02
Railway Stocks Plummet Despite Budget Hike: IRFC, RVNL Down 5% After 2026 Announcement
- •Railway stocks like IRFC, RITES, RVNL, and Titagarh Rail Ltd. fell up to 5% after the Union Budget 2026 announcement on February 1.
- •The Ministry of Railways received an allocation of ₹2.93 lakh crore for FY27, a 10% increase from the previous year's ₹2.65 lakh crore.
- •Despite the budget increase, market disappointment stemmed from the absence of major new announcements, particularly regarding new trains or Vande Bharat trains.
- •Increased spending was noted across segments: new railway lines (₹36,722 crore), gauge conversion (₹4,600 crore), and rolling stock (₹52,109 crore).
- •Brokerage firms like Nirmal Bang had already estimated a 10% increase, so the allocation was not a major surprise, leading to no immediate positive reaction.
Why It Matters: Railway stocks declined despite a budget increase, as investors were disappointed by the lack of new major announcements.
✦
More like this
Loading more articles...
