RVNL, other railway stocks rally up to 3% ahead of Budget
Shares of railway stocks such as RVNL, other railway stocks gained up to 3% on Sunday, February 1, as investor optimism picked up ahead of the Union Budget, which is scheduled to be presented later today. The gains reflect expectations of a sustained capital expenditure push, particularly toward railways and transport infrastructure.
RVNL rose over 2% to their day’s high of Rs 351 per share, while IRFC rallied over 3% to Rs 124 per share. IRCTC was quoting 1.5% higher at Rs 632 per share. IRCON shares gained 3% to their day’s high of Rs 168 per share. Titagarh Rail Systems rose 3% to Rs 843 per share on the BSE.
According to Motilal Oswal Securities (MOSL), the government is likely to reinforce its infrastructure-led growth strategy through a revamped National Infrastructure Pipeline (NIP) 2.0, with an estimated outlay of around Rs 1,50,000 crore. Spending is expected to be concentrated on transport infrastructure, including railways and metro projects, alongside roads, power, and transmission & distribution (T&D).
Higher allocations for capital expenditure in these segments would be positive for engineering and EPC players such as L&T, ABB, Siemens, Hitachi Energy, Siemens Energy, KEC, and KPI, the brokerage said.
The brokerage expects railway capex to rise by around 8%–10% year-on-year, supporting order inflows across the value chain.
Meanwhile, Axis Securities expects the Union Budget 2026–27 to allocate Rs 12,00,000–13,00,000 crore toward capital expenditure, implying a 10%–15% YoY increase. Roads and railways are likely to remain key focus areas, with continued momentum under the National Infrastructure Pipeline, particularly for high-intensity projects such as high-speed rail, expressways, and dedicated freight corridors.
Axis expects allocations for the Ministry of Road Transport & Highways to rise by 9%–10% YoY, reflecting the government’s push to expand the road network. Railways, too, are likely to see a sharper increase, with budgetary allocation projected to grow by around 15% in 2026–27. Higher spending is anticipated toward rail capacity expansion, safety enhancements, and new services, underscoring the strategic emphasis on connectivity.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
RVNL rose over 2% to their day’s high of Rs 351 per share, while IRFC rallied over 3% to Rs 124 per share. IRCTC was quoting 1.5% higher at Rs 632 per share. IRCON shares gained 3% to their day’s high of Rs 168 per share. Titagarh Rail Systems rose 3% to Rs 843 per share on the BSE.
According to Motilal Oswal Securities (MOSL), the government is likely to reinforce its infrastructure-led growth strategy through a revamped National Infrastructure Pipeline (NIP) 2.0, with an estimated outlay of around Rs 1,50,000 crore. Spending is expected to be concentrated on transport infrastructure, including railways and metro projects, alongside roads, power, and transmission & distribution (T&D).
Higher allocations for capital expenditure in these segments would be positive for engineering and EPC players such as L&T, ABB, Siemens, Hitachi Energy, Siemens Energy, KEC, and KPI, the brokerage said.
The brokerage expects railway capex to rise by around 8%–10% year-on-year, supporting order inflows across the value chain.
Meanwhile, Axis Securities expects the Union Budget 2026–27 to allocate Rs 12,00,000–13,00,000 crore toward capital expenditure, implying a 10%–15% YoY increase. Roads and railways are likely to remain key focus areas, with continued momentum under the National Infrastructure Pipeline, particularly for high-intensity projects such as high-speed rail, expressways, and dedicated freight corridors.
Axis expects allocations for the Ministry of Road Transport & Highways to rise by 9%–10% YoY, reflecting the government’s push to expand the road network. Railways, too, are likely to see a sharper increase, with budgetary allocation projected to grow by around 15% in 2026–27. Higher spending is anticipated toward rail capacity expansion, safety enhancements, and new services, underscoring the strategic emphasis on connectivity.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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