After the Interim Budget 2024 announcements, railway stocks experienced a decline, primarily attributed to profit booking following the absence of major announcements for the railway sector. Indian Railway Finance Corporation (IRFC), IRCON International, Rail Vikas Nigam (RVNL), RailTel Corporation of India, and Texmaco Rail & Engineering witnessed drops ranging from 1.80% to 2.85%. Bharat Heavy Electricals Ltd (BHEL), Titagarh Rail Systems Ltd, and Jupiter Wagons Ltd also recorded 1% to 2% declines.
Notably, BEML emerged as the sole gainer, reaching a 52-week high. Analysts suggest positive momentum for BEML stock, emphasizing a favorable bias and recommending long positions with strong support at ₹3,480 and resistance at ₹3,800.
During the budget presentation, Finance Minister Sitharaman outlined plans to expand metro rail and Namo Bharat to additional cities. Moreover, the budget included initiatives to upgrade 40,000 regular bogies to Vande Bharat standards and implement key economic railway corridor programs.
Despite the high expectations with an all-time high allocation of ₹2.4 lakh crore for railways in the FY24 budget, railway stocks faced a downturn. Analyst Sanjay Moorjani from SAMCO Securities highlighted the conversion of over 40,000 rail bogies to Vande Bharat coaches, potentially benefiting stocks like Titagarh Rail Systems, Jupiter Wagons, Siemens, and RVNL. The move aims to improve travel efficiency, boost tourism, and create job opportunities.
Over the past year, railway stocks witnessed significant growth, with Rail Vikas Nigam, IRFC, Ircon International, RailTel Corporation of India, Texmaco Rail & Engineering Ltd, Titagarh Rail Systems, and Jupiter Wagons showing substantial increases ranging from 221.93% to 422.54%, according to Trendlyne data.
