Mon Jan 20 04:20:00 UTC 2025: ## Railway Stocks Surge on Anticipation of Increased Budget Allocation
**Mumbai, January 18** – Shares of Rail Vikas Nigam Limited (RVNL) jumped as much as 5 percent on Friday, fueled by expectations of a significant increase in the upcoming Union Budget 2025-26 allocation for the Indian Railways. While the stock saw a slight correction later in the day, it followed an 11 percent surge the previous day. The heightened investor interest reflects optimism surrounding a potential boost in capital expenditure (CAPEX) for the railway sector.
RVNL closed at ₹426.90 on January 17, up 3.83%. The company’s stock has seen a strong rebound since January 13, after securing a ₹3,622 crore contract from BSNL.
Other railway stocks also witnessed significant movement. Titagarh Rail Systems gained 2.29 percent to ₹1,077, while Indian Railway Finance Corporation (IRFC) rose 2.57 percent, closing at ₹146. IRCTC shares also saw a 2.12 percent increase, closing at ₹779. However, it’s important to note that some of these stocks have seen significant declines over the past six months.
Analysts predict a 15-20 percent increase in the railway ministry’s CAPEX allocation in the upcoming budget, potentially reaching ₹3 lakh crore, compared to the record ₹2.62 lakh crore allocated in the 2024-25 budget. The Union Budget 2025-26 is scheduled to be presented on February 1st. The market’s positive reaction underscores the significant impact expected from increased government spending on railway infrastructure development.
First Piper 