Railway Stocks Crash: Budget Disappointment Sinks IRFC, RVNL, RITES Shares
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CNBC Awaaz•01-02-2026, 15:29
Railway Stocks Crash: Budget Disappointment Sinks IRFC, RVNL, RITES Shares
- •Railway sector stocks, including IRFC, RITES, RVNL, and Titagarh Rail Systems, fell by up to 5% after the Union Budget 2026.
- •The Ministry of Railways received an allocation of ₹2.93 lakh crore for FY27, a 10% increase from the previous year.
- •Increased CAPEX was noted for new railway lines (₹36,722 crore), gauge conversion (₹4,600 crore), and rolling stock (₹52,109 crore).
- •Signaling, telecom, and electrification projects saw their CAPEX double from ₹500 crore to ₹1,000 crore.
- •Investors were disappointed by the lack of major announcements regarding new trains or mega projects, leading to selling pressure.
Why It Matters: Despite increased allocation, railway stocks crashed due to the budget's lack of new mega project announcements.
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