End Of The Line? Railway Stocks Lose Steam As Budget Disappoints Investors

Railway stocks were trading in the red on Thursday after the government’s brief Interim Budget failed to meet investors’ expectations, with many stocks coming off record highs after a blistering rally.

What Happened: In her Budget speech, Finance Minister Nirmala Sitharaman said three major railway economic corridor programs, focusing on energy, mineral and cement corridors, port connectivity corridors and high traffic density corridors, were set to be rolled out.

These projects, falling under the PM Gati Shakti initiative, will aim to enhance multimodal connectivity, thereby boosting logistics efficiency and reducing costs, the minister said.

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Sitharaman also unveiled plans for the expansion of key rail infrastructure projects such as Metro Rail and Namo Bharat to additional cities. She also said that around 40,000 rail bogies would be converted into Vande Bharat coaches.

Railway Stocks Share Price Action: Here’s a breakdown of stock reactions following the speech.

  • RITES‘ stock was the biggest loser, giving up 4.11% following the speech.
  • Rail Vikas Nigam (RVNL) was the second-biggest loser, easing 2.58% while Ircon International and and Railtel Corporation shares both lost over 2.5%.
  • Indian Railway Finance Corp (IRFC) shares were down more than 2%.
  • Titagarh Rail Systems’s share price was down 1.45%.
  • Meanwhile, shares of Container Corp and IRCTC were both down more than 1%, but firmly in the red.

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