Railway stocks rise after Rs 2.4 lakh crore budgetary outlay
Railway stocks were trading mostly higher on Wednesday after the Finance Minister Nirmala Sitharaman announced highest ever budgetary outlay for railways
- Feb 1, 2023,
- Updated Feb 1, 2023 12:23 PM IST
Railway stocks were trading mostly higher on Wednesday after the Finance Minister Nirmala Sitharaman announced highest ever budgetary outlay for railways in her budget speech. Sitharaman announced to allocated Rs 2.4 lakh crore for the railway sector while presenting the Union Budget 2023.
Shares of Railway and related stocks jumped sharply following the budget announcement by Sitharaman. She added that this allocation will provide cushion for boosting affordable regional connectivity and logistics of cargo freights.
Rail Vikas Nigam jumped more than 4 per cent to Rs 79.4, whereas IRCON International posted similar gains to Rs 62.45. Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC) were also trading higher up to 2 per cent during the early trade.
Texmaco Rail & Engineering and Titagarah Wagons were also trading in green after the announcement. However, shares of RailTel Corporation of India were trading lower.
A big boost has been given to railways where outlay increased to Rs 2.4 lakh crore this is 9 times the amount over FY14, said Veer Trivedi, Research Analyst, Samco Securities. "The Highest ever outlay to railways. stocks that would be buzzing post this announcement would be RVNL, CG power, IRCTC, IRCON, Larsen & Toubro, Siemens, BEML," he added.
Investment of Rs 75,000 crore focusing on freight will help Indian Railways increase its modal share. This is in line with the National Rail Plan aim to raise the modal share to 50 per cent from 25 per cent now.
Sitharaman also announced a capex allocation of Rs 10 lakh crore, underscoring predictability and continuity and railway sector is among those leading sectors which are expected to garner the lion’s share of allocation.
The government continued its thrust on increasing capital expenditure for the Railways sector by providing an outlay of Rs.2.4 Lakh crore, the highest ever for the sector. It is nearly 9 times the outlay provided in 2013-14, said Sanjay Moorjani, Research Analyst, Samco Securities.
He has picked Titagarh Wagons, Gabriel, Texmaco Rail, IRCTC, IRFC to be the major beneficiaries from this step up in capital expenditure by the government.
Also read: Avanti Feeds, Apex Foods shares rally 8% as FM announces sub scheme under PM Matsya Sampada Yojna
Railway stocks were trading mostly higher on Wednesday after the Finance Minister Nirmala Sitharaman announced highest ever budgetary outlay for railways in her budget speech. Sitharaman announced to allocated Rs 2.4 lakh crore for the railway sector while presenting the Union Budget 2023.
Shares of Railway and related stocks jumped sharply following the budget announcement by Sitharaman. She added that this allocation will provide cushion for boosting affordable regional connectivity and logistics of cargo freights.
Rail Vikas Nigam jumped more than 4 per cent to Rs 79.4, whereas IRCON International posted similar gains to Rs 62.45. Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC) were also trading higher up to 2 per cent during the early trade.
Texmaco Rail & Engineering and Titagarah Wagons were also trading in green after the announcement. However, shares of RailTel Corporation of India were trading lower.
A big boost has been given to railways where outlay increased to Rs 2.4 lakh crore this is 9 times the amount over FY14, said Veer Trivedi, Research Analyst, Samco Securities. "The Highest ever outlay to railways. stocks that would be buzzing post this announcement would be RVNL, CG power, IRCTC, IRCON, Larsen & Toubro, Siemens, BEML," he added.
Investment of Rs 75,000 crore focusing on freight will help Indian Railways increase its modal share. This is in line with the National Rail Plan aim to raise the modal share to 50 per cent from 25 per cent now.
Sitharaman also announced a capex allocation of Rs 10 lakh crore, underscoring predictability and continuity and railway sector is among those leading sectors which are expected to garner the lion’s share of allocation.
The government continued its thrust on increasing capital expenditure for the Railways sector by providing an outlay of Rs.2.4 Lakh crore, the highest ever for the sector. It is nearly 9 times the outlay provided in 2013-14, said Sanjay Moorjani, Research Analyst, Samco Securities.
He has picked Titagarh Wagons, Gabriel, Texmaco Rail, IRCTC, IRFC to be the major beneficiaries from this step up in capital expenditure by the government.
Also read: Avanti Feeds, Apex Foods shares rally 8% as FM announces sub scheme under PM Matsya Sampada Yojna