Railway-related stocks experienced a significant uptrend, with shares surging up to 15% to reach new highs on Saturday. The surge is attributed to expectations of a higher allocation for Indian Railways in the upcoming Budget 2024. In January alone, these railway stocks have witnessed an impressive surge of up to 75%.IRCON International saw a 15% intra-day surge to a new high of Rs 261.35, followed by Rail Vikas Nigam (RVNL) with a 10% rally to its record high of Rs 320.75. Indian Railway Finance Corp (IRFC) surged 9.7% to its new peak of Rs 176. RailTel jumped 8% to its all-time high of Rs 417.80, and IRCTC advanced 4.7% to its 52-week high of Rs 1,029.85.RVNL has experienced a 10th consecutive positive session and surged by 75% in January alone, following a 10.5% rise in December 2024 and a 6.5% gain in November 2023. In the last year, the stock has provided significant returns, rising by 279%.IRFC has rallied over 74% in January, following a 33% rise in December and a 2.8% gain in November. Over the last year, IRFC has seen multibagger returns, skyrocketing over 385%.IRCON has gained over 276% in the last year and 45% in January so far. In January, RailTel has advanced over 21%, and IRCTC stock has added over 14%.These 3 Railway stocks have delivered more than 30-40% average return in just 3 days including today. 🚀💚#IRFC #IRCON #RVNL #railwaystocks #StockMarket pic.twitter.com/TTuzNKrrbf— Himanshu Verma | The Nifty Man (@TheNiftyMan) January 20, 2024The surge in these stocks is fueled by expectations of a higher allocation for Indian Railways in the upcoming budget. Finance Minister Nirmala Sitharaman had allocated Rs 2.4 lakh crore for the financial year 2023-24, and there are anticipations of continued investment in rail infrastructure and services to support the vision of a modern and efficient rail network in the country. The railway sector is poised for transformation, with a record capex target of Rs 2.60 trillion in 2023-24, representing a 65.6% increase compared to the previous year. This investment is aimed at initiating necessary changes to meet the vision of a developed and technologically advanced rail system.
